Lowering Your Gas Expenses After a Drop in Gas Prices in Germany
In recent times, gas prices in Germany have been a topic of significant interest for consumers and businesses alike. Here's a breakdown of the current situation, providing insights into the cost of gas, the providers offering the best deals, and the implications for the transition towards renewable energy.
Firstly, it's worth noting that consumers who signed gas contracts earlier this year or before may find themselves in a more advantageous position compared to those who signed later. This is due to the fact that wholesale gas prices in August 2025 hit their lowest monthly average of the year at around 3.3 cents per kilowatt hour.
For a single-family household with an annual gas consumption of 20,000 kWh, this translates to potential savings of almost €700 annually compared to average basic supply prices. The three cheapest providers in Germany, according to the German Institute for Service Quality (DISQ), are 123energie, eprimo, and GASAG, offering an average gas price of about 9.73 cents per kWh as of September 2025.
Households on the local basic supply, on the other hand, may pay up to €2,800 per year, €1,000 more than those on competitive tariffs. The notice period for customers of the local basic supply who have never switched providers is generally shorter at around 14 days.
The easing of energy market tensions following the post-pandemic supply crunch has made both spot and forward contracts for natural gas more affordable. This affordability is further strengthened by increased imports of liquefied natural gas (LNG) from the United States and other suppliers, which have stabilised the continent's gas market.
Germany has also ramped up its import infrastructure, allowing more diversification and reducing reliance on Russian pipeline flows. Improved gas storage levels across Europe due to two consecutive mild winters have reduced short-term winter risk and lessened demand pressure.
However, sustained low gas prices can slow the transition away from fossil fuels, as consumers and businesses are less incentivized to shift to renewables or invest in energy efficiency. This trend, if continued, threatens to erase hard-won environmental gains.
The German government has been criticized for using funds earmarked for the Climate and Transformation Fund (KTF) to scrap the gas storage surcharge. Despite this, the government plans to scrap a gas storage surcharge levy, which is expected to help household prices drop further.
It's also important to note that there is no danger of losing gas supply during the switch in Germany. Consumers in Germany have additional rights to terminate contracts early without penalty if their supplier raises prices or if they move to a new address where the existing service is no longer possible.
Lastly, it's worth mentioning that Verivox energy expert Thorsten Storck advises that competitive gas suppliers are passing on these price reductions in an attempt to attract new customers. Households can save on gas bills by changing their contracts, and it's advisable to regularly compare prices to ensure you're getting the best deal.
In conclusion, while the current low gas prices offer savings for consumers, it's crucial to remember the long-term implications for the environment and the transition towards renewable energy sources.
