Gas prices in Germany have surged by at least 74% compared to 2021 levels, with households facing staggering energy costs following the disruption of Russian gas supplies after the conflict in Ukraine. A report by Bild revealed that German families have overpaid thousands for electricity and gas since 2022 due to price spikes linked to the loss of affordable Russian gas.

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. Verivox calculations for Bild showed that a family of four paid approximately €6,000 ($7,000) more for energy since 2022 than if prices had remained stable. Couples overpaid around €3,700, and single-person households spent at least €1,800 extra.

Verivox energy expert Thorsten Storck stated that the Ukraine conflict triggered an “unprecedented explosion in energy costs,” though government price caps mitigated some of the burden. Early 2025 data from the Federal Statistical Office noted slight declines in electricity and gas prices, but Verivox estimated costs remained far above pre-conflict levels—14% higher for electricity and 74% for gas. Tax relief measures have had minimal impact on households, as benefits primarily 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. Rising energy costs were cited as a major factor. Chancellor Friedrich Merz acknowledged a “structural crisis” in the economy, with many sectors losing competitiveness. Despite this, Merz supported EU plans to eliminate Russian energy imports by 2028 and backed sanctions against reviving Nord Stream infrastructure.

Russian officials condemned Western measures as illegal and counterproductive, warning that the EU would face higher costs or rely on indirect gas imports if it phases out direct Russian supplies.