Electricity and gas could become more expensive in the coming months, there is no downturn in sight for heating oil and petrol has also recently increased again. That makes a lot more expensive – even for Mother’s Day.
Energy threatens to become even more expensive for German households. The drivers are massive increases in wholesale prices, according to an analysis by the Federal Association of Energy and Water Industries (BDEW).
Due to the long-term procurement strategies of the energy suppliers, the higher prices would “only reach customers with a delay,” said BDEW boss Kerstin Andreae. But the longer the price level remains high, the more the wholesale prices would be “reflected in the tariffs and also influence them in the long term”.
Wholesale prices have risen sharply
Since the beginning of last year, the wholesale prices for electricity have quadrupled and those for gas almost fivefold, according to the BDEW. For private customers, on the other hand, the average kilowatt hour of electricity in the year to date has only increased by 15.5 percent and, according to BDEW, cost 37.14 cents. The price of gas for private customers, on the other hand, has roughly doubled.
For small and medium-sized industrial customers, the increase in electricity prices is significantly higher and is almost 50 percent to an average of 31.36 cents in the year to date for new contracts. The BDEW did not present any figures on gas prices for industrial customers.
There is hardly any improvement in sight for other energy sources either: the relaxation in fuel prices after the records in March is over. The trend has been pointing upwards again for around a month. According to ADAC, a liter of diesel cost 2.085 euros on a nationwide daily average on Thursday, a liter of Super E10 2.012. For the E10, that is almost 53 cents more than the average for May 2021. Diesel is even a good 75 cents higher.
Greatly increased order volume
The brokerage platform HeizOel24 also reports a currently very strong increase in order volume. The prospect of an embargo on Russian oil is causing many homeowners to replenish their own stocks. And that despite the fact that the prices are high at around 1.40 euros per liter. “Many tanks in private households are more or less empty, which should keep demand high throughout the summer months,” said managing director Oliver Klapschus.
However, the Federal Association of Medium-sized Oil Companies (Uniti) observed “no increased or unusual demand for heating oil”, as a spokesman said. The association surveyed some member companies, while HeizOel24 relies on platform data.
The rapidly climbing energy prices are among the most important drivers of the currently high inflation. This happens not only through gas station, electricity, gas and heating oil bills, but also because energy costs drive up the prices of other goods. For example, the Munich Ifo Institute recently reported a peak in the index of price expectations, which shows how many companies want to raise prices. One of the main reasons: the energy costs. In view of the companies’ price increase plans, Ifo economics chief Timo Wollmershäuser expects inflation to remain above 7 percent in the coming months.
Debate about possible countermeasures
Recently, the debate about possible countermeasures by the European Central Bank (ECB) has gained new impetus – especially since its US counterpart has just raised interest rates. This leads to an appreciation of the US dollar against the euro and increases inflationary pressure in Europe, said Ifo President Clemens Fuest of the “Augsburger Allgemeine”. “In this respect, there is a certain pressure for the ECB to follow.”
Bundesbank President Joachim Nagel, who sits on the ECB Council, also sees a certain urgency: “The time window that is now opening up for monetary policy measures is closing so slowly and we have to see that we do something about it this year », he said at an event of the «Frankfurter Allgemeine Zeitung» in Frankfurt.
The price trend has long since had an impact on consumers: In a survey conducted by the Welt television channel, 49 percent of participants said that they “definitely” or “rather” have to cut back because of the increased prices. 42 percent said they would “rather” not or “not at all” have to limit themselves.
The rising prices don’t even stop before Mother’s Day, as the Institute of the German Economy (IW) has calculated: Since March 2021, cut flowers have risen by around nine percent, probably mainly because of the high energy prices, as the economic researchers explained. After all, chocolate has only become 1.7 percent more expensive.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
