EU gas rates achieves historic high in 2024

(MENAFN) Household gas prices in the EU soared to record highs in the second half of 2024, according to new data from Eurostat released on Tuesday. It marked the first price increase since the 2022 energy crisis triggered by the Ukraine conflict and EU sanctions on Russia.

Eurostat reported that average gas prices, including taxes, reached €12.33 ($13.96) per 100 kilowatt-hours between July and December 2024—up from €11.04 ($12.50) in the same period the previous year. This is the highest level recorded since Eurostat began tracking the data in 2008. The rise was largely attributed to increased taxation and the rollback of government subsidies.

Gas prices varied significantly across the EU. Sweden reported the highest nominal rate at €18.93 ($21.43) per 100 kWh, though natural gas makes up just 2% of its energy mix. In terms of purchasing power, gas was most expensive in Portugal, which relies heavily on LNG imports, mainly from Nigeria and the US, with minimal supply now coming from Russia.

Italy followed Portugal in adjusted price levels, having drastically reduced its Russian gas intake. However, Italian officials have hinted at a potential return to Russian imports once the Ukraine conflict ends.

Hungary reported the lowest gas prices in both nominal and adjusted terms, maintaining strong ties with Russia and sourcing over 80% of its gas via pipelines from the country. Prime Minister Viktor Orban has warned that rising energy prices could devastate the EU’s economy.

Since 2022, the EU has cut Russian gas imports from around 40% to 19%, replacing it largely with more expensive LNG, especially from the US. Meanwhile, Russia continues to criticize Western sanctions as unlawful and has shifted its energy exports toward more favorable markets.

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