Germany Expects Gas Prices to Stay High for Several Years
- By 2027 prices may drop to pre-war levels, government says
- Nation paid €22.7 billion in subsidies to combat energy crisis
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The German government expects gas prices to remain elevated until at least 2027, highlighting the need for additional emergency measures, according to a report approved by the Cabinet on Wednesday.
Forward prices at the end of June indicated that there may be an increase on wholesale markets to about €50 ($54.62) per megawatt-hour in the coming months, according to an analysis by the economy ministry. Expectations are normalizing and imply a return to pre-crisis levels within four years. The forecast chimes with estimates by Germany’s gas storage operators, which suggest a risk of gas shortages until early 2027.