Gas prices reach 2022 levels

The wholesale price of European gas reached 97 euros per megawatt-hour on Monday, October 26, the highest level since 2022. This surge is attributed to cold weather returning and ongoing supply tensions, particularly in the Middle East, which threaten liquefied natural gas flows.

Winter demand and lower reserves

As temperatures drop and Europe enters winter, gas reserves are below their usual seasonal levels. According to market data from The Guardian, buyers expect higher heating demand, while supply remains vulnerable to geopolitical risks, increasing pressure on gas prices.

Storage levels remain below normal

Gas Infrastructure Europe reported on October 9 that European underground gas storage was filled to 72% as of October 1, about 11 percentage points below the previous year's level. Current estimates suggest storage is now around 75%, compared to the usual 80% at this time of year.

Wholesale prices vs. consumer costs

The 97 euros per megawatt-hour quoted on the European wholesale market does not directly translate to residential gas tariffs. The Commission de régulation de l’énergie (CRE) publishes a monthly reference price that includes taxes and other costs, which for November 2026 averages 194.90 euros per MWh.

Contract structures vary

Floating-price contracts shield their holders from supply fluctuations during the guaranteed period, according to contractual terms. Offers tied to the CRE’s reference price can change with monthly revisions, while market-variable price offers depend on formulas written into the contract, affecting how quickly price changes are passed on to consumers.

Consumers advised to compare carefully

Households evaluating gas contracts should look at the price per kilowatt-hour, subscription fees, guarantee periods, and revision conditions separately. The CRE emphasizes that its reference price is a comparison tool, not a subscription offer. Companies with short-term supply contracts should also be cautious, as wholesale market tensions can affect their purchasing conditions before influencing consumer prices.