Energy prices in an EU comparison: Who is hit hardest by expensive fuel

Rising prices for petrol, electricity, gas – expensive energy is a growing problem for many households. But how does Germany compare to other countries in Europe?

More than 1.70 euros for a liter of gasoline – shortly before Christmas, the shock is deep for many. At a petrol station in Cologne, a customer describes desperately that the fuel is simply too expensive for her. You always fill up for five euros. Then drive it as far as it comes and then refuel again for five euros. Another shakes her head and says: “Disaster, it has become so expensive. I’m already thinking about really selling the car and taking the train.”

The development of gasoline prices has a negative impact on the wallet and on the mind. Are the European neighbors shaken in the same way? Where does Germany stand in the EU comparison? This is how it looked in November: The most expensive gasoline in the Netherlands was more than two euros. Denmark followed just behind. In an EU comparison, Germany was still relatively cheap at 1.74 euros. The cheapest petrol from Bulgaria was 1.20 euros per liter.

How much income is needed for fuel?

In comparison, gasoline is not quite as expensive in this country. But that alone doesn’t say so much. More important is how much of the available income has to be used for fuel.

For this calculation it is necessary to determine how high the income is in the various EU countries. According to the Institute of the German Economy, Luxembourgers and Danes have the highest net income per month – with over 5600 euros and 4600 euros respectively. In Germany, the median income of a family with two adults and one child is 3519 euros. It is lowest in Bulgaria at 692 euros. So Germany is not at the top, but it is relatively far ahead.

The impression of expensive gasoline is quickly put into perspective when the fuel prices are compared to disposable income. For Germans, 100 liters of petrol only make up five percent of their income. In the case of the Danes, it is even less at 4.3 percent – despite high fuel prices. The Luxembourgers have to spend the least, with 2.7 percent of their income on 100 liters of petrol. Petrol has the biggest impact on Bulgarians. They benefit from the cheapest price per liter, but because of their low income they have to spend 17.4 percent of it on fuel.

“Relatively cheap in a European comparison”

So do these numbers show that Germans have no reason to be upset? “In a European comparison, we come off relatively cheap,” confirms Christoph Schröder from the Institute for the German Economy. “That is because the income in Germany is relatively high.”

This relationship can also be seen with gas: A middle German family spends 1.8 percent of their income on gas. It is a similar amount in Denmark, with the Luxembourgers doing the cheapest. Most other Europeans, however, have to spend significantly more. Germans spend 2.3 percent of their income on electricity. Here, too, the electricity costs eat up a significantly larger proportion of income in many other countries.

Cost of living, taxes, and government grants vary everywhere. Sometimes there is also a lack of data. All of this makes a 100% watertight comparison difficult. But it becomes clear: Even if many German citizens groan about high energy prices, Germany is in a relatively good position in a European comparison with the resulting burdens on household incomes.

Fear of price increases due to the energy transition

Nevertheless, the energy bill is causing a lot of worries in this country too. Prices have continued to rise since the data was collected. How will it be in the future? What can the energy transition achieve? A passer-by in Cologne city center hopes that energy will become cheaper in the long term, but he does not yet believe it will. Another is already sure: “I think it will be more expensive.” Above all, many are concerned that the switch to renewable energies will cause prices to rise again. But is it justified?

A look at Denmark shows that there will be an end to coal, gas and oil in 2050. Even now, half of the electricity comes from renewable energy sources. It should be 100 percent by 2050. By then, at the latest, Denmark wants to be independent of other energy suppliers. What about the cost? Denmark financed renewable energies early on through the state budget and relieved electricity consumers, explains Alexander Dusolt of the Agora think tank. That of course makes renewable energies more attractive. The ranking shows: Although fuel is expensive, the Danes have to spend less of their disposable income than many others. And for gas and electricity, they are also only in 18th place – despite the energy transition.

Denmark shows opportunities for cheaper energy

In the end, will the energy transition even be cheaper for consumers? According to Dusolt, renewables have long been the cheapest form of electricity generation. Solar and wind systems are significantly cheaper than new gas and coal-fired power plants. So he expects that the energy transition will not be more expensive, but rather cheaper. Nevertheless, Denmark also had to invest billions in the energy transition at the beginning.

That will also apply to Germany. In this country, coal and nuclear power will soon be switched off. It is questionable whether the prices can then be kept stable for the high energy demand. But Denmark shows that the energy transition could also lower prices in the medium and long term.