Gas prices in the EU's largest economy set to rise ahead of winter

Wholesale gas prices could rise to around 50 euros ($54.62) per megawatt hour before winter, based on futures prices at the end of June, according to a report by the German Economy Ministry.

Germany is still at risk of gas shortages during the heating season until the winter of 2026-2027. (Source: AFP)

The German Economy Ministry pledged to continue monitoring developments in the gas market to be ready to respond to potential problems that could arise with higher prices.

The ministry's forecasts are in line with recent forecasts by German gas storage operator INES.

Earlier in August, INES warned that the European Union's (EU) largest economy would remain at risk of gas shortages during the heating seasons until the winter of 2026-2027 unless it adds fuel infrastructure, including transshipment terminals, storage capacity and liquefied natural gas (LNG) pipelines.

Germany imported 40% of its gas from Russia before 2022. The country has been hit hardest by the reduction in Russian energy supplies in 2022 – which have been significantly reduced or stopped altogether after the EU imposed sanctions on Moscow.

Last year, the German government paid 22.7 billion euros in subsidies for electricity and gas from 2022 to ease the impact of rising costs on citizens.

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