Regulated gas prices in France may rise between 2% and 3% from Jan. 1, French daily Le Figaro reports Thursday, without citing its sources.

A rise of between 2% and 3% is being studied by the state, France 's energy regulation commission and GDF Suez SA (GSZ.FR), le Figaro reports.

Speaking on French radio RTL Thursday, Prime Minister Jean-Marc Ayrault said the government is negotiating with GDF Suez to try to alter the mechanism and the contracts that determine increases in regulated gas prices.

"I can't confirm the exact figure, but it's true that we are regularly confronted with these price increases linked to the contracts indexed to the price of oil," said Mr. Ayrault.
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