Energy Costs for German Households Decline Amid Global Economic Slowdown
A new analysis by the comparison portal Verivox has revealed that energy costs for German households have decreased by around five percent since the start of the year, a consequence of the relatively weak global economic trend. According to the analysis, the average cost for a three-person household has dropped to €5,173 per year, down from €5,442 in January, a reduction of €269.
The decline in energy costs is largely attributed to the decrease in crude oil prices, which has led to lower prices for heating oil and gasoline. Additionally, the average prices for electricity and natural gas have also seen a slight drop since the beginning of the year. However, prices are still more than a quarter higher than they were before the energy crisis in 2022, said Thorsten Storck, energy expert at Verivox, in an interview with the Funke-Mediengruppe.
The prices for heating oil and gasoline have seen a significant decline, with the cost of 20 hectoliters of heating oil now standing at €1,744, a reduction of around 16 percent since January. Diesel prices have dropped by around seven percent, while super gasoline has become three percent cheaper.
The decrease in heating oil prices can be attributed to the end of the heating season, which has led to a decrease in demand, in turn affecting the diesel price, Storck explained. The average electricity price for households with an annual consumption of 4,000 kilowatt-hours has decreased by three percent, from €1,434 to €1,388, while the price of natural gas has dropped by two percent.
The main reason for the price decreases in electricity and natural gas is the lower offers from regional suppliers for new customers, with only minor reductions in the basic tariffs of local suppliers, Storck added. The Verivox calculation is based on a three-person model household with an annual heat demand of 20,000 kilowatt-hours, an electricity consumption of 4,000 kilowatt-hours and an annual driving distance of 13,300 kilometers.