European gas prices fall back to pre-war levels

European gas prices fall back to pre-war levels
Credit: Belga / Michel Krakowski

The price of gas on the Dutch TTF futures market has fallen to its lowest level since August 2021 on Monday. The price of gas for contracts in April fell below €40 per megawatt hour.

The price of gas reached record highs last year following Russia’s invasion of Ukraine. A sharp drop in pipeline deliveries of gas, paired with international sanctions, forced the price of gas upwards.

In August 2022, the price of gas exceeded €300 per megawatt hour. Much of this price increase was footed by the customer, who received record-high energy bills.

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Towards the end of last year, prices began to finally stabilise. By December, the price was down to around €150 per megawatt hour. Since then, prices have fallen rapidly, partly as a result of the end of the heating season and ample European reserves.

This summer, European countries will have more gas and will be able to save gas for the next heating season. In Belgium (unlike its neighbours) inflation has fallen, largely due to a reduction in energy prices. Inflation stood at 5.4% in February, down from 7.4% in January.

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