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Minister warns that continued instability in gas supply could have serious consequences for manufacturing sectors.

As the war in Ukraine continues to disrupt global energy markets, concerns are growing in France over the impact of rising gas prices on the industrial sector. On Friday, Sébastien Martin, the French Minister for Industry, addressed the issue, stating that while the situation is currently manageable, it cannot last indefinitely.

Gas Price Concerns Surge in Industrial Sectors

Speaking on French news channel BFMTV, Martin explained that although much attention has been focused on skyrocketing oil prices, it is the rising cost of gas that is causing greater concern among industrialists. “The paradox is that we talk a lot about the price of oil. And in reality, our industrial sectors are ultimately more worried about gas issues,” Martin said, adding that sectors like glass production and chemicals are particularly vulnerable.

The minister acknowledged that many industries are currently shielded from the worst of the price hikes, as they are covered by contracts with pre-fixed prices. However, he warned that this situation could change if the crisis drags on for months. “For the moment, it is holding,” Martin stated, but quickly added, “If it were to last for months and months, the contracts would have to be reviewed, the share taken on the markets would undoubtedly be greater, and the consequences would be seen on our industrial sector.”

“For the moment, it is holding, but it shouldn’t last too long. If it were to last for months and months, the contracts would have to be reviewed.” – Sébastien Martin

Rising Costs Could Impact Consumers

While the immediate effects on consumers are limited, Martin acknowledged that prolonged price instability could eventually lead to higher costs. “If things were to last, obviously, there is a point where if additional costs were too significant, there will be discussions to see how they can be passed on,” he explained. However, he emphasized that, at present, the impact on consumers has been minimal.

The situation remains precarious, and as the war drags on, both the industrial sector and consumers in France will be closely watching the evolution of gas prices and their broader economic consequences.