ECB: Gas price hikes to reach eurozone consumers within three months

The European Central Bank (ECB) reports that wholesale natural gas price increases are being passed on to consumers in most eurozone countries within a maximum of three months. This acceleration is attributed to the liberalization of energy markets since 2022, which has led to shorter contract periods and greater price flexibility.

Wholesale natural gas prices have risen by more than 140 percent compared to last year, driven by supply constraints related to conflicts in the Middle East and Europe's efforts to replenish stocks ahead of the heating season. Extreme weather conditions also contributed to price volatility during the summer.

According to an ECB survey of eurozone central banks, approximately 60 percent of countries will see wholesale price changes reflected in retail prices within one to three months, up from less than 50 percent in 2022. In about ten percent of countries, the transfer will take four to six months, while one-third will see it take seven to twelve months. Notably, the proportion of countries where price transmission is slow (taking 13 to 24 months) has dropped from roughly 40 percent in 2022 to about five percent.