Gas prices for new customers rose in Germany to the highest level in a year, the German news portal Agrarheute reported on June 5.
The reason for this is the sharp increase in wholesale prices. The increase in VAT and gas storage fees also causes an increase in gas prices. They have been growing for several weeks in a row, market analysts note.
In early June, gas prices for new customers increased to 8.3 cents per kWh, the highest prices for new customers since December of last year.
However, compared to the previous year’s record prices, current gas prices remain relatively low. According to experts, the reasons for the recent increase in gas prices are multiple. One of the factors influencing prices are the heat waves predicted by meteorological services for the European summer.
In addition, production losses and short-term bottlenecks in gas supply occur in Europe. In this context, wholesale gas prices reached their highest level in seven months.
Meteorological services expect significantly higher temperatures in northern Europe in June and also predict heat waves in parts of France and Spain. These forecasts have increased demand for gas for gas-intensive refrigeration (air conditioning), especially as persistently high temperatures in Asia have also increased competition in the LNG market.
Source: Rossa Primavera
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