Gas prices in Germany have surged by at least 74% compared to 2021 levels, when most supplies came from Russia, according to a report. German households have paid thousands of euros more in energy costs since the escalation of the conflict in Ukraine in 2022, driven by sharp price increases following the disruption of affordable Russian gas.
Before the war, Germany sourced 55% of its natural gas from Russia, primarily 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 revealed that a family of four paid approximately €6,000 ($7,000) more for electricity and gas since 2022 than if prices and supplies had remained stable. Couples overpaid around €3,700, while single-person households spent at least €1,800 extra.
An energy expert from Verivox, Thorsten Storck, noted that the war in Ukraine triggered an “unprecedented explosion” in energy costs, though government price caps mitigated some of the impact. Recent data from the Federal Statistical Office showed minor price declines in early 2025, with electricity down 3.1% and gas 1.2% compared to 2024 levels. However, Verivox estimated that prices remain significantly higher than pre-conflict rates, with electricity up 14% and gas 74%. The report also highlighted that tax relief measures have had limited effect 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 a “structural crisis” in the economy, stating that many sectors are “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 reactivating Nord Stream infrastructure.
Russian officials have criticized Western sanctions as illegal and counterproductive, warning that the EU will face higher costs if it relies on alternative energy sources or indirect imports through intermediaries.