Energy prices rise across Europe and Bosnia and Herzegovina

European energy markets are facing significant upward pressure on prices ahead of the heating season. Natural gas prices in Europe have risen approximately 120 percent since the start of the year, with TTF benchmark contracts reaching around 63.7 euros per megawatt-hour. This surge is compounded by low storage levels; as of early August, European gas storage was only 57.1 percent full, well below the EU target of 90 percent.

Several factors contribute to this volatility, including heatwaves that increase electricity demand, droughts reducing hydroelectric and nuclear output, and geopolitical tensions affecting supply routes like the Strait of Hormuz. While increased LNG imports and reduced overall consumption provide some resilience, analysts warn that a particularly cold winter could trigger further price spikes.

In Bosnia and Herzegovina, the heating market is also seeing sharp increases, particularly for pellets. While producers report costs between 550 and 650 KM per ton, retail prices for A1 class pellets have been reported as high as 895 KM. This discrepancy is attributed to raw material shortages and rising production costs. Additionally, fuel prices in regions like Banja Luka have risen due to increased refinery costs driven by global geopolitical instability.