The increase in energy prices affects almost all sectors of the European economy, but to varying degrees, as shown by an ING analysis. The impact is stronger in sectors with high energy consumption, while other industries feel the effects indirectly.
„The effects of rising energy prices are felt by almost all companies. Aviation, maritime transport, and chemical companies are directly affected by higher energy prices,” the ING analysis, signed by economists Gerben Hieminga and Maurice van Sante, states.
According to the study, European energy markets have become "very tight and volatile" since the fall of 2021, when concerns about limited natural gas stocks for winter led to significant price increases.
Shortly thereafter, Russia's invasion of Ukraine further intensified market volatility. Europe imposed sanctions on imports of coal and oil from Russia, while Russia gradually reduced gas flows to the European Union by approximately 23 billion cubic meters, representing about 15% of Russia's total gas supplies to the EU.
The ING analysis emphasizes that these developments suggest that "energy prices are likely to remain high for much longer." Prior to these shocks, natural gas was already a major cost factor for many European industries; subsequently, prices have remained significantly above historical levels.
Direct Impact: Energy-Intensive Sectors on the Front Line
According to the study, sectors with very high energy intensity, such as aviation and maritime transport, are the most affected by rising energy costs. These industries rely heavily on petroleum fuels, and price increases are directly reflected in operating costs.
ING specifies that in these sectors, "energy represents a high level of terajoules consumed per million euros of value added produced," making them particularly sensitive to price fluctuations. Fierce competition in these industries makes it difficult to pass on higher costs to customers without competitive losses.
Read the full analysis List of the Most Affected Sectors in the European Economy by the Rise in Energy Prices on Curs de Guvernare