Gas wholesale prices are not expected to affect gas consumer prices
Gas wholesale prices have risen following the Ukrainian counterattack on Russia, but energy expert Malte Küper predicts they won't impact consumer prices. "If we're seeing price fluctuations that will only last a few weeks, it won't affect the prices households pay for natural gas," Küper told the German Press Agency dpa. The reason is the long-term purchasing strategies of energy suppliers. Küper is a consultant for energy and climate policy at the employer-friendly Institute of the German Economy (IW) in Cologne.
The strategically important gas transit station Sudzha, located in the Russian region of Kursk and currently under Ukrainian control, is a key route for Russian natural gas to flow through Ukraine into Slovakia, Austria, and other European countries. Since news of the attack, the price of a megawatt hour of natural gas on the Dutch TTF trading hub has risen. On Monday, the price for September delivery reached a high of nearly 43 euros per megawatt hour, a level not seen since early December 2023.
Küper attributes the increase in wholesale prices primarily to market concerns about potential unintentional destruction of the station during combat operations, such as from a missile strike. "I can't see a Ukrainian interest in disrupting supplies now," the expert said. If there were to be unintentional damage, Austria could potentially be supplied with natural gas via Germany and Italy.
The escalating conflict between Ukraine and Russia has led to concerns about the safety of the gas transit station Sudzha, causing an increase in natural gas wholesale prices. Despite this fighting, Küper believes that consumer prices will remain unaffected due to the strategic long-term purchasing strategies of energy suppliers.
