Gas prices are rising due to the Iran war and low storage levels

The operators of German gas storage facilities warn of low filling levels in the event of a very cold winter. But gas prices are also rising sharply as a result of the Iran war. According to Verivox, private customers will likely feel this in their wallets by the turn of the year.

The comparison portal Verivox expects a further increase in gas prices for private households due to the Iran war. “Due to the current sharp rise in wholesale prices for gas, the low level of gas storage in Germany and the coming winter, we expect an increase in gas prices for households,” says Thorsten Storck, energy expert at Verivox, to the “Rheinische Post”.

Storck emphasizes: "New customer prices for gas reflect wholesale prices particularly quickly and have risen by over a third since February. Existing customer tariffs react more slowly to price developments, but will also rise sooner or later. At the current price level, price increases of between ten and 20 percent are possible at the turn of the year."

The wholesale price in Europe has risen to its highest in more than three and a half years following mutual attacks by the US and Iran this week. Malte Küper, energy expert at the German Economic Institute (IW), told the editorial team: "Germany is particularly vulnerable to price shocks because its economy is more dependent on natural gas than that of many other countries. In addition, Germany and the EU are almost entirely dependent on gas imports."

Concern about shortages

The comparatively low levels of gas storage in Germany are fueling concerns about security of supply in winter. The Federal Ministry of Economics still sees no acute risk of a shortage. However, the operators of German gas storage facilities do not believe that supply is guaranteed in the event of a very cold winter.

The German gas storage facilities are currently only about 55 percent full, while the average across the EU is just under 67 percent. Last year, the average filling level at the same time in Germany was almost 74 percent and in the EU it was a good 79 percent. The reason for the hesitant storage is the high prices on the world market for months as a result of the Iran war. The closure of the Strait of Hormuz has reduced the global supply of liquefied natural gas.