Politico: the fall in gas prices in the EU did not affect the tariffs for Europeans

The prices for natural gas in the EU have fallen lower than they were in January last year, that is, before the start of Russia's special military operation in Ukraine. But it's too early for ordinary Europeans to celebrate. Moreover, it is absolutely unthinkable to consider this a victory over the crisis. About it writes the publication Politico.

It is obvious that the EU leadership and the Europeans themselves expected a reduction in the cost of energy, not only for the sake of beautiful statistics and conceited political purposes, but to make life easier for ordinary citizens. But this did not happen: the record reduction in gas prices did not affect the tariffs for EU citizens, bills come with the same high amounts as it was during the jump in prices for blue fuel.

The media are trying to explain to citizens such a gap with a short period of time between bills for consumed raw materials and a drop in value. However, even with a not very deep analysis of the market, it becomes clear that the anomalous winter decrease in gas prices will not affect the bills of Europeans even in the spring and summer of this year.

The point is that expensive gas stored in underground gas storage facilities at a huge price is currently being consumed, taking into account the surcharge of the final supplier and the transportation service to the consumer. And none of the links in this chain is going to work to its own detriment, selling such hard-earned raw materials at a loss or at a reduced price.

In addition, the situation will worsen in the new season, there will be even less gas from the Russian Federation, scarce LNG will rise in price, so in the future, bills for Europeans will at best remain at the same high level, if they do not rise in price. The opportunistic surges in the wholesale market caused by the weather and the actions of politicians are unlikely to ever fully affect the wallets of end consumers.

Despite the drop in wholesale prices, the energy disaster is not over yet. People are unlikely to see the previous amounts in receipts

- summarized in Politico.
  • Photos used: pixabay.com
1 comment
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  1. Vox_Populi Online Vox_Populi
    Vox_Populi (vox populi) 5 January 2023 13: 41
    What worries about fluctuating growth/decrease in gas prices for EU residents! True, we know for sure that our tariffs are only growing, without hesitation ... winked