Home » Business » Gas rose by forty percent a day – ČT24 – Czech Television

Gas rose by forty percent a day – ČT24 – Czech Television

On Tuesday, the price of the November contract rose by about twenty percent and for the first time exceeded one hundred euros. In just two days, the price of gas with delivery the following month increased by about sixty percent. “It’s just ridiculous,” said ICIS analyst Tom Marzec-Manser about the sharp rise in gas prices. “It is almost impossible to justify how and why it moves so fast and so high,” he added, according to Bloomberg.

According to most analysts, the rise in prices is due to rising economic activity, low gas reserves and the approaching heating season. There have also been allegations that Russia is manipulating the price in order to get the new Nord Stream 2 pipeline up and running quickly.

Russia denies responsibility for rising prices. “We insist that Russia has no role in what is happening in the European gas market now,” said Kremlin spokesman Dmitry Peskov. According to him, the rise in prices is the result of a combination of several factors, including the European Union’s efforts to quickly switch to renewable energy sources, for which stable supplies are not ready, the DPA agency noted.

Kremlin chief Vladimir Putin said Europe was responsible for the current situation because it had not concluded enough contracts for long-term supplies of Russian gas. “Their policy was to get rid of long-term contracts, and this policy turned out to be wrong,” the Russian president told a meeting with Russian energy industry, according to AFP.


The situation is already being addressed by the European Union

The European Union has already begun to address the rapid rise in energy prices, including natural gas. EU Energy Commissioner Kadri Simson said on Wednesday that the EU plans to review gas market rules by the end of the year to ensure that rising energy costs do not disrupt the economic recovery from the covid-19 pandemic.

According to the current statement of the President of the European Commission (EC) Ursula von der Leyen, the Union will consider, among other things, the separation of hitherto tied gas and electricity prices or the establishment of common strategic gas reserves.

Simson also said that gas supplies in Europe are lower than usual, but sufficient to cover winter consumption. “By the end of the year, I will propose a reform of the gas market. In this context, I will examine the issues surrounding storage and security of supply, “she said. According to her, the Union should consider joint purchasing and accelerate the transition to cheaper renewable energy sources.

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