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Germany: Gas prices rise in October causing higher costs for consumers

German news. Rising gas prices in Germany. Germany rises the prices of gas making it expensive for gas customers. The state gas surcharges is intended to save energy suppliers from bankruptcy.

Consumers will have to pay for the extra costs.

The purchase prices for gas has been rising steadily for months and the gas surcharges planned by the federal government will cause costs to skyrocket again.

According to zdf, The surcharge is intended to financially strengthen importers and suppliers so that they do not collapse if Russia continues to throttle deliveries.

Economics Minister Robert Habeck said that it was not an easy step but necessary to secure the heat and energy supply in private households and in the economy. The surcharge could amount to 1.5 to five cents per killowat hour.

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According to the Ministry of Economic Affairs, the exact amount should be announced on August 15th.

BILD wrote that in extreme cases, a four-person household could be burdened with almost 1000 euros a year. And that in addition to the increased gas prices.

The aim is to prevent insolvencies and delivery failures in the gas supply and thus maintain security of supply for citizens and the economy.

Why is Germany setting a levy on gas prices?

Russia has significantly reduced gas volumes through the important Nord Stream 1 pipeline, citing technical reasons. The federal government regards the reason as a pretext.

This leaves importers having to replace failed deliveries, which means they have to buy on the short-term markets at significant higher costs.