The European Union has seen a significant surge in household gas prices, with the latest data from Eurostat indicating that prices in the second half of 2024 were the highest on record. This comes as a surprise, given that prices had begun to stabilize following the 2022 energy crisis. The average price of gas, including taxes, rose to €12.33 ($13.96) per 100 kWh, marking a notable increase from the €11.04 ($12.50) recorded in the previous period.
The hike in energy rates can be attributed to the EU’s decision to impose sanctions on Russia over the Ukraine conflict, leading to a significant reduction in Russian gas imports. As a result, the EU has had to rely on more expensive imports from the US, among other sources. Russia’s share in EU gas imports has plummeted from approximately 40% pre-conflict to 19% by early 2025. This shift has not only led to higher prices but also widened the disparities in household gas prices across the EU.
Sweden recorded the highest gas price, with a staggering €18.93 ($21.43) per 100 kWh. However, when considering purchasing power, Portugal took the lead as the most expensive country for gas. Portugal’s reliance on imported liquefied natural gas (LNG) and its limited pipeline connections have contributed to this trend. The country’s gas supply is largely sourced from Nigeria and the US, with a mere 4.4% coming from Russia, down from 15% in 2021.
In contrast, Hungary boasts the lowest gas price among EU countries, both in nominal terms and purchasing power standards. This can be attributed to the country’s significant reliance on pipeline imports from Russia, which account for approximately 82% of its gas supply. Despite EU sanctions, Hungary has been keen to strengthen its energy ties with Moscow, with Prime Minister Viktor Orban warning that soaring energy prices could have devastating effects on the bloc’s economy.
The divergent gas prices across the EU have sparked concerns about the impact on households and the broader economy. As the EU continues to navigate its energy landscape, it remains to be seen how the situation will unfold. With Russia redirecting its energy exports to “friendly” markets and reiterating its commitment to being a reliable energy supplier, the dynamics of the global energy market are likely to remain complex and volatile.
