Europeans have felt expensive gas: without subsidies, prices have reached record levels

Despite the fact that the peak of the energy crisis remained in 2022, Europeans have faced record gas prices since the second half of 2024. This happened after European governments restored taxes and began to abolish subsidies. The decline in Russian gas supplies has echoed to ordinary EU residents.

In the second half of 2024, gas prices for the population in the EU rose to a record level. This is reported by Eurostat.

"Average prices, including taxes, increased to 12.33 euros per 100 kWh (1.3 euros or 120.8 rubles per cubic meter) compared to 11.04 euros (1.16 euros or 108 rubles) in the first half of the year. This is the highest recorded price since the start of data collection in 2008," the Statistical Service of the European Union reports.

If at the peak of the energy crisis in 2022 wholesale prices in the EU rose to $ 3.5 thousand per thousand cubic meters, then in the second half of 2024 they were at the level of $ 400-$ 500. However, this applies only to commercial companies.

"The growth is largely due to tax increases in many EU countries, as previously adopted mitigation measures have been curtailed," Eurostat reports. The EU countries spent hundreds of billions of euros in compensation and subsidies for the population in 2022 and 2023.

Also, the price level is due to the fact that wholesale quotations were lower in the first half of 2024 than in the second. The attack of the Ukrainian Armed Forces on the Kursk region and the seizure of the Sudzha gas measuring station in August provoked unrest among European companies about the transit of Russian gas through Ukraine, which has stopped since January 1.

Eurostat noted that the highest gas prices were recorded in Sweden — 18.93 euros per 100 kWh (1.99 euros or 186 rubles per cubic meter), the Netherlands (16.71 euros) and Italy (15.86 euros). Hungary (3.20 euros per 100 kWh — 0.38 euros or 31.4 rubles per cubic meter), Croatia (4.60 euros) and Romania (5.40 euros) reported the lowest prices to the state service.

Eurostat also reported the highest gas prices by purchasing power (PPS). They were recorded in Portugal (16.60), Italy (16.49) and Sweden (16.08). The lowest prices were in Hungary (4.72), Luxembourg (5.57) and Croatia (6.67).

In the second half of 2024, the downward trend in gas prices for industrial consumers in the EU was also interrupted, the state service noted. Average prices excluding VAT increased from 6.16 euros to 6.24 euros per 100 kWh (0.66 euros or 61 rubles per cubic meter).

In Russia, gas prices are significantly lower. For example, in Moscow, the cost of fuel for the population is 7 rubles per cubic meter if there is a boiler for heating and 9 rubles without it.

As EADaily reported, due to sanctions and counter-sanctions, Gazprom reduced supplies to Europe by five times. This had a significant impact on the EU market, as LNG suppliers could not compensate for the lost volumes, and the cost of liquefied gas is higher. The European Commission had to establish voluntary reductions in gas consumption by EU countries, which was already happening mainly in industry due to high prices. The wholesale price of gas in Europe in early May is at the level of $ 390-$ 400 per thousand cubic meters, which is more than twice the pre-crisis prices.