Germany's LNG dependency replaces Russian gas as new fossil trap
Germany's shift from Russian pipeline gas to liquefied natural gas (LNG) has created new dependencies on global market prices and international crises, rather than achieving energy sovereignty. A Leibniz Centre for European Economic Research (ZEW) analysis of fuel price regulations shows that a policy limiting price increases to once daily has primarily boosted supplier margins, not consumer relief. This pattern reflects a broader energy policy where state intervention reorganizes markets and stabilizes supply chains without addressing the power structures that determine prices, risks, and profits.
Key facts
- Germany replaced Russian pipeline gas with LNG
- New dependencies on global market prices and crises emerged
- Fuel price increases limited to once daily since April
- ZEW analysis shows policy increased supplier margins
- State intervention fails to address power structures in energy markets
Entities
Institutions
- Leibniz-Zentrum für europäische Wirtschaftsforschung (ZEW)
- Der Freitag
Locations
- Germany