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France Expands Fuel Aid as Rising Prices Squeeze Households, Businesses

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France will expand measures to cushion households and businesses from rising fuel prices, including a broader fuel allowance and increased support for farmers, construction companies, and fishermen, the French government said on Tuesday.

The government will also introduce a rule in its 2027 budget to redirect any surplus from fuel-related tax revenues to measures addressing the energy crisis.

David Amiel, Minister for Public Action and Accounts, said there was currently no "windfall" from higher fuel prices, with tax revenue down by 407 million euros ($466 million) as of Sept. 20.

The fuel allowance will be expanded to cover 5.5 million people, up from 3 million previously. The government said that eligible recipients will receive a fixed payment of 100 euros over three months, equivalent to about 40 euro cents per liter.

The government is also raising the tax-free fuel allowance that employers can provide workers to cover commuting costs. The ceiling will rise to 1,000 euros from 600 euros previously and will remain exempt from income tax and social security contributions.

Sector-specific support will continue through the end of 2026, with construction companies receiving 20 cents per liter and farmers 15 cents per liter, while fishing companies will be eligible for interest-free loans of up to 50,000 euros from Oct. 1.

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Commodities

US Power Update: Prices Show Wide Regional Swings, With PJM Above $500/MWh

US electricity markets saw wide price swings, with locational marginal prices varying sharply across regions as power demand shifted.The Independent Electricity System Operator led the markets at 5 p.m. ET with a locational marginal price of $36.47 per megawatt-hour, compared with $30/MWh for the Independent System Operator of New England, which posted the lowest price at that hour.For intraday peaks, PJM Interconnection reached $518.41/MWh at 1:35 p.m. ET, while the IESO recorded the lowest locational marginal price at $0/MWh at 2:45 a.m. ET.The National Weather Service's Climate Prediction Center forecasts above-normal temperatures across most of the US from Sept. 29-Oct. 5, with near-normal readings in some areas of the West.

Commodities

Natural Gas Update: US Futures Fall on European Decline

US natural gas prices fell to a one-week low on Monday, pressured by a sharp decline in European gas prices, while forecasts for hotter US weather helped limit the losses.In US trading, both the front-month Henry Hub contract and the continuous contract fell by 2.85% to $2.829 per million British thermal units.In Europe, the front-month Dutch TTF gas futures contract dropped 7.417% to 73.620 euros ($84.40) per megawatt-hour, while British NBP futures declined 7.469% to 183.36 pence ($2.45) per therm.Losses in US gas prices were tempered by forecasts for hotter weather that could boost demand from power generators for air conditioning, Barchart said. The Commodity Weather Group said on Monday that forecasts had shifted hotter, with above-average temperatures expected across the US Gulf Coast through Sept. 30.US gas production remained robust, while inventories were above historical averages, limiting the potential for a sharper price rally. In Europe, gas prices fell after details of Germany's latest gas storage tenders indicated that the volumes sought would be lower than initially expected.

Commodities

Market Chatter: Meta's Alberta Data Center Boosts Province's Appeal to US Hyperscalers, Capital Power Says

Capital Power CEO Avik Dey said Meta's (META) planned CA$13 billion ($9 billion) Alberta data center has boosted the province's appeal to hyperscalers, who view the project as a vote of confidence in the government's artificial intelligence strategy, Reuters reported on Monday.Dey reportedly said the company is in talks with several firms seeking electricity for potential projects and expects other US hyperscalers to follow Meta.More than 100 data centers have been proposed in Alberta, which offers abundant natural gas, available land and a cold climate. Capital Power will initially supply 250 megawatts of electricity to Meta's site.Capital Power did not immediately respond to a request for comment from.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$META