HomeEconomyRising energy prices: Overseas territories hit particularly hard

Rising energy prices: Overseas territories hit particularly hard

Rising energy prices are hitting overseas territories hard, whose supply depends on aviation and shipping. A worrying phenomenon that threatens both homes and businesses.

Overseas territories are particularly vulnerable to the explosion in energy prices. In question, its mode of supply that depends on aviation and ocean freight. Faced with this, the public authorities seek solutions to avoid the bankruptcy of companies and the impoverishment of households.

In New Caledonia, while the cost of living is already 30% higher than in mainland France, prices, for example, have increased by 18.6% for energy and 5.6% for food, according to figures from the Isee (New Caledonia Institute of Statistics and Economic Studies).

The president of the CPME in this South Pacific territory, Yann Lucien, is concerned about the consequences of this inflation on the most fragile companies.

Companies in liquidation or in recovery

Despite a fuel deal with importers, unions from Rouleurs (small contractors who transport nickel ore on behalf of mining companies) and BTP blocked fuel depots in Nouméa for three days in mid-August to protest against the rise in diesel prices, which he believes threatens his business.

In French Polynesia, the executive director of Air Tahiti Nui, Michel Monvoisin, also points out that with inflation, “it is not profitable for companies to fly to Polynesia. Either the companies stop or they make losses.”

Although fuel already represents 30% of charges, these companies cannot increase prices because “there is excess air capacity to Polynesia” and rather they are “in permanent promotion” to fill their planes.

In Guyana, where the economy “depends on public procurement”, the Guyana Chamber of Commerce and Industry (CCIG) asks “that inflation be taken into account in the contracts already made, signed, before the price increase”, indicates its president Carine Sinaï-Bossou.

Car “at the moment où les marchés publics ont été déposés, notifiés, il y avait moins d’inflation et les chefs d’entreprises que les ont remportés ne peuvent plus y répondre à ce prix-là aujourd’hui”, explain-t- she.

A drop in the price at the pump of 52 euro cents

People are also suffering from this increase in fuel costs in overseas territories. To combat rising prices in Mayotte, where the poverty rate is five times higher than that of France, the State, the Departmental Council and TotalEnergies Mayotte announced Thursday that their joint work has resulted in a drop in the price of electricity. gasoline at the pump for 52 cents (7.4 euro cents per liter thanks to the Departmental Council, 25 cents/L by the State and 20 cents/L by TotalEnergies until October 31).

The department is making an effort of 1.2 million euros in three months through dock fees, said its president Ben Issa Ousseni (LR).

The prefect Thierry Suquet reminded him of the signing of the Price-Quality Shield (BQP) when the Delegate Minister for Foreign Affairs Jean-François Carenco visited the territory on August 22.

Created in 2012, the BQP is a system to regulate the price increases of certain essential items, specific to overseas territories.

At the initiative of the minister, “we have therefore started a process of reflection on the BQP+”, with the idea “of introducing a qualitative, legible approach to the BQP”, and the objective of signing it “by the end of the month of September”. , specified the prefect.

Author: NLC with AFP
Source: BFM TV

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