Energy prices in Germany remain high
The most affected was the price of natural gas, which rose by 50 percent
Producer prices for energy in January 2023 were still a third higher than a year earlier. The most affected was the price of natural gas, which rose by 50 percent, followed by the price of electricity, which increased by 27.3 percent. Petroleum products such as heating oil and fuels were still 12.6 percent more expensive than a year ago, despite a decline in early 2023.
Some energy imports were significantly more expensive in December 2022 than before Russia's attack on Ukraine. Gas imports cost nearly a quarter more, imported petroleum products were 14.6 percent more expensive, and electricity imports cost 45.7 percent more. Energy products also became more expensive for consumers, especially for heating and refueling.
However, there are signs of easing at gas stations. Fuel prices at upstream economic levels are slowly falling, which is now also being felt by consumers. According to the European Commission and the Market Transparency Unit for Fuels at the German Federal Cartel Office, on February 13, 2023, a liter of Super E5 cost a daily average of €1.83 and a liter of diesel €1.78. The price difference compared with prices shortly before the Russian attack on Ukraine is small.
Despite the easing at the gas stations, high energy prices in Germany continue to be a challenge for the economy and consumers. The German government has announced that it will push ahead with the energy transition and reduce dependence on fossil fuels. But this will be a long-term process, and until then energy prices in Germany are likely to remain high.
Rising energy prices are also an incentive for companies to invest in renewable energies. In recent years, renewable energy production in Germany has increased sharply. In 2021, almost 50 percent of electricity came from renewable sources such as wind power, solar energy and biomass. However, the energy transition and the transition to renewable energies will continue to present challenges and opportunities for the German economy and society in the coming years.