THE HAGUE, March 5 (Xinhua) -- Amid escalating tensions in the Middle East, energy prices in the Netherlands have surged sharply, prompting several Dutch energy suppliers to adjust or withdraw fixed-price energy contracts. Research institutions have warned that persistently high energy costs could weigh on economic growth and push inflation higher in 2026.
Dutch TTF natural gas futures for April delivery rose 3.27 percent to 50.37 euros (58.45 U.S. dollars) per megawatt-hour on Thursday, up from 31.96 euros (37.09 dollars) last Friday, representing a 57.6 percent increase within four trading days.
Fuel prices at the pump have also climbed. The price of Esso Euro95 gasoline rose to 2.35 euros (2.73 dollars) per liter on Thursday, an increase of 12 cents compared with last Friday, while Esso diesel increased by 30 cents to 2.33 euros (2.70 dollars) per liter, just four cents below the record high reached in 2022.
The price surge follows heightened geopolitical tensions after the United States and Israel launched attacks on Iran Saturday, raising concerns about energy supplies from the Middle East. For the time being, shipments of key fuels, including liquefied natural gas from Qatar, crude oil from Saudi Arabia, diesel from Kuwait, and kerosene from the United Arab Emirates, face growing uncertainty in global markets. Europe typically sources a substantial share of these fuels from the region.
Facing rapidly rising procurement costs, many Dutch energy suppliers have begun adjusting their contract offerings. Most companies have increased prices for fixed-term contracts, while some have temporarily withdrawn longer-term fixed deals to limit risk exposure.
According to comparison platform Overstappen.nl, several suppliers have raised tariffs and reduced cashback incentives for new customers. At the same time, a number of longer-term contracts have been removed from their websites.
"This situation is reminiscent of the early period of the war in Ukraine, when energy prices also surged sharply. At that time, it was even temporarily impossible to sign a fixed-price energy contract," said Rick Boenink, an energy expert at Overstappen.nl, on Wednesday.
The changes have already translated into higher costs for Dutch households. According to Overstappen.nl, the average monthly energy cost for a two-person household signing a new fixed-term contract has increased by around 36 euros (41.78 dollars) within a week. While households would have paid approximately 153 euros (177.58 dollars) per month last week, the cost has now risen to about 189 euros (219.36 dollars) per month.
Rising energy prices are also expected to have broader implications for the Dutch economy.
According to a report released by Rabobank, which is one of the major banks in the Netherlands, higher energy costs are likely to push inflation upward in the coming years. The bank forecasts that inflation will average 2.7 percent in 2026 before easing to 2.1 percent in 2027.
"This means inflation in 2026 will be about 0.3 percentage points higher than that in January 2026, illustrating how strongly geopolitical developments can influence domestic price pressures," the report said.
The impact extends beyond direct increases in fuel and electricity bills. Higher energy costs also raise production expenses for manufacturers, which are often passed on to consumers through higher prices for food, industrial goods, and other products. These so-called "second-round effects" typically emerge with a time lag following energy price shocks.
In the short term, higher energy costs are expected to weaken household purchasing power and dampen private consumption. Businesses may also become more cautious about investment as operating costs rise and geopolitical uncertainty increases.
Energy-intensive sectors, such as metals, food processing, and chemicals, could face declining international competitiveness, potentially reducing demand for Dutch exports.
The extent of the ultimate economic impact for Europe and the Netherlands depends on the duration of the conflict and the degree of escalation and these ultimately determine how long the Dutch economy will face higher energy prices and increased uncertainty, Rabobank added. Enditem
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