If you would like to help refugees, we have compiled some important information on our topic page – some of it in foreign languages. We are constantly expanding the offer in the current situation.
What happens if Russia stops supplying gas?
In the short term there are reserves – the gas supply will not stop immediately. This is emphasised by the gas industry association, the German government and the EU Commission. Additional gas purchases from other sources are already being prepared, which will then be distributed among the states. liquidation pallets uk
Gas has already become more expensive for consumers, even without a Russian supply freeze (as of 9 March 2022). If the freeze were to come, it would probably cause prices to rise further.
The share of Russian gas for our consumption in Germany is immense, at around 50 percent. Should a supply stop come and last, we will need alternatives in large quantities in the winter of 2022/2023. So far, Germany lacks terminals for liquefied gas – this could be an alternative, because it can be transported by ship over the sea. The German government is already planning the construction of suitable terminals at local ports. Even with such a solution, gas will remain more expensive, because to transport the natural gas in ships, it has to be liquefied and cooled down considerably (minus 162 degrees), for which energy has to be used. That costs money and is bad for the climate.
With the climate package, the German government decided that CO2 emissions would cost money in the future. Thus, in 2021, one tonne of the climate-damaging gas would cost 25 euros. In the following years, the levies will then gradually increase until they reach a value of 55 euros per tonne in 2025. This will also have an impact on oil and gas prices.
Will costs for other types of heating besides gas also rise?
As gas prices rise, large energy consumers are switching. Industry can partly switch to other energy sources such as coal, oil and renewable fuels. This, in turn, is causing prices to rise there as well. In addition, the big oil companies have announced that they no longer want to buy oil from Russia. The oil price has therefore already skyrocketed. Some industrialised countries are therefore considering releasing part of their strategic oil reserves.
In addition, the climate package will have an impact on the oil price in the coming years (see previous point).
What is clear is this: Heating with fossil fuels will become more expensive.
But those who live in rented accommodation do not see this directly. Landlords collect down payments on the service charges and advance additional costs if the heating becomes more expensive. You should therefore be prepared for the possibility of high additional payments in the annual statement for 2022.
Put some money aside for this. If you are short of money, you can also check whether you are entitled to housing benefit. For housing benefit and Bafög recipients, the government has also decided on a heating allowance that can at least cushion some of the costs.
What about electricity prices?
Here, consumers could at least be helped by the announced reduction in the EEG surcharge in the summer – if suppliers pass on the cost reduction. Nevertheless, electricity prices have risen in recent months, regardless of the war in Ukraine. Here, too, commodities that have become more expensive, such as coal and gas, are now driving up the price.
If you have an older contract with a long-term guaranteed electricity price, you should not switch at the moment. If, on the other hand, you are already paying a lot for electricity because you are on an unfavourable tariff, you should look around to see if there are any switching options.
Is there an impact on fuel prices?
Both crude oil and fuel at petrol stations have become more expensive during the war in Ukraine. Petrol and diesel have now climbed above the 2.10 euro per litre mark, according to ADAC information from 9 Mar 2022. This means that prices for super are 27.6 cents higher than in the previous week, and for diesel even 39.4 cents.
The main reason for the dramatically rising fuel prices is the strong nervousness on the crude oil market. There have never been such price jumps as at present in Germany.
On the other hand, a small relief could bring: The commuter allowance is to be raised retroactively to 1 January for long-distance commuters from the 21st kilometre. So those who drive a lot to work can at least save a little money here.
We provide tips on how to save fuel in a separate article.
How will inflation develop?
The Ukraine war will continue to drive up consumer prices. Initial calculations assume that the inflation rate in Germany could be between four and six percent in 2022. Energy prices in particular are likely to rise further as a result of the conflict.
However, energy costs do not only affect consumers directly, but also indirectly for all kinds of products. Manufacturers will pass on their increased energy costs.
Uncertainty is also high on the agricultural markets. Wheat prices, for example, have risen sharply with the outbreak of the war, as Russia and Ukraine are among the world’s largest producers. This is likely to cause food prices to climb further.
In addition, a sanctions spiral has been set in motion, which in a globally interconnected economy will also have an impact on the income and expenditure of many companies and thus on prices.
Are jobs at risk?
At least where there are close ties to Russia. Russian companies have branches and subsidiaries in our country that can probably be hit hard and fast by sanctions. The operator of the Nord Stream 2 pipeline, for example, is insolvent and has laid off its more than 140 employees.
If local companies have particularly close ties to the Russian market, this can also cause difficulties – and possibly job losses.
According to media reports, the Association of German Chambers of Industry and Commerce assumes that about 40,000 German companies have business relations with Russia. Around 250,000 full-time jobs depend directly on exports to R