Small businesses in rural France bears the brunt of energy crisis triggered by Iran war

France's rural communities are grappling with the brunt of the global energy crisis that originated from the Iran war. Nearly a third of the French population, around 21 million people, reside in the countryside, which accounts for approximately 90% of the country's landmass. In Saint-Just-en-Chaussée, a town with a population of around 6,000 people in the northern Oise department, the escalating energy prices are already palpable, even in the local bakery.

Kevin Luce, a baker in the town, operates two heating oil-fired ovens, a fuel source that was once cost-effective but has become significantly more expensive. The price of oil-fired ovens has increased by 50%, making them far more expensive to run than electric ovens. Luce's last delivery of heating oil amounted to 2,200 euros for 1,200 liters, whereas six months ago, he had paid 2,100 euros for 2,000 liters.

This disparity in energy costs is directly impacting his business, resulting in reduced wages, no pay rises for employees, and hindered investments.

Small businesses in rural France are being forced to cut back on their operations. For instance, Martial Realland, a food truck owner, has ceased refilling his oil tank altogether. Just last year, he had 1,500 liters delivered at a cost of 1,600 euros, but now, at 1.80 or 1.90 euros per liter, the price has almost doubled. Consequently, Realland no longer receives oil deliveries. He has also started turning down jobs that require long distances, stating that the current crisis is no longer bearable.

The surge in energy costs is reminiscent of the gilets jaunes movement that erupted in autumn 2018 due to a rise in fuel taxes. The protest gained significant momentum in rural and outer-suburban areas, the same communities now facing the heaviest burden of the ongoing energy crisis.