German households still pay 74 percent more for gas than before Ukraine war

German household gas prices remain around three quarters higher than before Russia’s invasion of Ukraine. During the first half of this year, households paid 11.87 cents per kilowatt-hour for natural gas on average, an increase of almost 74 percent compared to the second half of 2021, said the country’s statistical office Destatis. Household power prices - on average 41.02 cent per kilowatt-hour - were one quarter higher than before the war.

A drop in prices on the wholesale energy markets does not reach households, Destatis said. “The expiry of the [government’s price cap] for natural gas and electricity at the end of 2023 had almost no impact on the prices paid by private households,” the statisticians said. “Private households have so far benefited little from the fall in wholesale prices for natural gas and electricity in 2023 and 2024.” Gas prices were on average four percent higher than during the second half of 2023, while electricity prices were around two percent lower.

Destatis said gas prices had been raised by the increase in the country’s CO2 price for transport and heating at the start of the year, as well as the return to normal VAT rates in April.  “The tax burden for all private natural gas customers rose by 27 percent compared to the second half of 2023.”

Compared to private households, companies faced much more moderate energy price increases on pre-war levels. Natural gas prices averaging 6.04 cents per kilowatt-hour were around 30 percent higher than during the 2nd half of 2021. Electricity on average cost companies 19.73 cents excluding VAT and other deductible taxes, an increase of almost 19 percent. Natural gas prices for non-household customers were ten percent lower than in the 2nd half of 2023, and electricity 3 percent cheaper.

Decreasing fossil gas deliveries to Germany from Russia even before the invasion of Ukraine in February 2022, and then a complete halt by late summer of that year, caused prices to reach record-highs – both for private consumers, who often still heat their homes with gas, and for industry, which uses the fuel in production. This caused a significant decrease in fossil fuel use - and thus greenhouse gas emissions - to a small extent also because households saved energy and thanks to favourable weather conditions.