Gas prices: Consumer advocates warn of increase due to low storage levels

Consumer advocates are warning of potential increases in gas prices for households, citing critically low gas storage levels and rising procurement costs. Ramona Pop, board member of the Federation of German Consumer Organizations (vzbv), expressed concern over the challenges for the upcoming winter, noting that gas purchase prices have risen significantly since the start of the conflict in the Middle East.

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We observe the gas storage levels very closely and see the possible challenges for the coming winter. The purchase prices for gas have been rising significantly since the start of the war in the Middle East.

"Low storage levels would further exacerbate the already tense situation in the energy markets during the coming heating season. For private households, this could mean higher energy prices," Pop told the "Rheinische Post." She advised consumers to exercise caution, urging them to check if their contracts include price guarantees extending beyond the winter and to compare offers from different providers.

Both German and European gas storage levels are considerably lower than at the same time last year. European storage stood at 61.37 percent on August 17, compared to nearly 74 percent a year prior. Germany's situation is more critical, with storage levels at 50.06 percent on August 17, down from almost 67 percent last year. Legally, German gas storage facilities are required to be 80 percent full by November 1, a target that industry associations believe may be difficult to achieve, even with maximum injection rates.

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Low storage levels would further exacerbate the already tense situation in the energy markets during the coming heating season. For private households, this could mean higher energy prices.

The ongoing conflict in the Middle East, which has disrupted the Strait of Hormuz, a key route for international gas and oil transport, is further driving up prices. This situation makes it less attractive for traders to purchase gas during the summer for resale in the winter. The German Ministry for Economic Affairs acknowledged the low storage levels, stating they are monitoring the situation closely within the geopolitical context and urging traders to increase injections. Federal Network Agency President Klaus Müller also placed responsibility on traders, emphasizing that sufficient gas is available and questioning why a trader would explain a winter shortage due to a lack of foresight.

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It is sufficient gas available. Therefore, I cannot imagine that a gas trader would want to explain to their customers that there is not enough gas in the winter because they did not provide sufficiently.