Impact of the Ukraine Conflict: Energy Prices Surge Nearly 30% Compared to 2021

In the aftermath of Russia's invasion of Ukraine in February 2022, energy prices have seen significant increases, with households in Germany now facing costs that are, on average, 31% higher than in 2021. This information stems from an analysis conducted by the comparison portal Verivox, which was shared with the German Press Agency.

Currently, a typical three-person household in Germany is spending approximately EUR5,407 annually on energy. In contrast, the expense was only EUR4,121 in the year preceding the war. This calculation is based on a household using gas or oil heating, requiring about 20,000 kilowatt-hours (kWh) for heating, consuming 4,000 kWh of electricity, and driving a gasoline vehicle for 13,300 kilometers each year. It's important to note that households utilizing district heating or heat pumps were not included in this analysis.

The increase in heating costs has been particularly pronounced, with gas prices escalating by an average of 74%. Verivox attributes this surge to a combination of rising procurement costs, increased gas network charges, and a higher CO2 price imposed on fossil fuels. The Gas Household Customer Price Index from the Federal Network Agency corroborates these findings, indicating a 76% rise in the index value for existing customers from January 2021 to January 2025.

While heating oil prices have also risen, they have done so at a lower rate of approximately 35%. Given that a greater number of households rely on gas heating rather than oil, the overall average heating costs have surged by 61%.

Motorists are also feeling the financial strain, with gasoline prices climbing by 15% and diesel prices by 21% since 2021, leading to an average increase of 17% for fuel costs overall.

Electricity prices have not remained unaffected, witnessing an average uptick of 17%. This increase is primarily attributed to higher network charges and escalated procurement costs faced by energy suppliers. Similar to gas prices, the Electricity Household Customer Price Index from the Federal Network Agency reports a nearly 14% increase in the index value for existing customers during the same period.

Experts from Verivox have indicated that a return to pre-war energy pricing levels is unlikely in the near future. With wholesale prices on the rise once again, alongside increasing network costs and CO2 prices, it is expected that energy expenses may continue to trend upward.