Gas prices in Europe have dropped dramatically, and for the first time since the summer of 2021, the price is below 30 Euros per megawatt-hour. This ongoing trend could lead to a significant reduction in energy costs for households.

On Friday morning, the price briefly dropped to 29.83 Euros. Gas was last this cheap one and a half years ago. At that time, prices surged when Russia attacked Ukraine, reaching a peak last summer when more than 250 Euros had to be paid for a megawatt-hour for several days.

Since then, gas has become cheaper again, partly because Europe has found other suppliers, as it hardly received any gas from Russia anymore. Added to this was a relatively mild winter, which more than halved the price of gas since the beginning of the year.

This price reduction is visible worldwide. "Prices are also falling in Asia, similar to Europe. In America, the price was already low, and it will stay that way," says René Peters, energy expert at TNO.

The European gas markets are stabilising again, and prices could continue to fall, as energy companies often follow trading prices with a delay of a few months. Some suppliers have already lowered the rates for variable contracts below the government's price cap. Companies like Vattenfall, Eneco, and Essent have already announced price reductions.

However, it will be a while before consumers can benefit from the falling prices. The energy companies have purchased a lot of gas at high prices. This gas must first come to the market, and gas prices are usually adjusted quarterly.