Higher energy and fuel prices await German citizens

According to the report of the international group Tasnim news agency quoting Tagus Spiegel newspaper, Germany’s parliament has decided on a further increase in CO2 prices from January planned by the government coalition Traffic Light, which will lead to higher costs for heating and fuel. The representatives of the factions of the parties present in the parliament’s traffic light coalition on Friday voted in favor of this proposed budget provision law.

In order to finance the 2024 budget, the so-called coalition At the traffic light this week decided to raise the price of CO2 on January 1st to 45 euros instead of 30-40 euros.

This additional revenue of 1.3 billion It brings the government €100,000 per year. The revenue from the carbon dioxide price flows into the Climate Change and Transformation Fund, which finances, among other things, climate protection projects.

According to ADAC information In this way, a liter of gasoline may become more expensive by 4.3 cents at the beginning of the year. Diesel drivers should also expect an increase of about 4.7 cents.

According to the calculations of the comparison portal Verivox, the price of gas is 0.39 cents per kilowatt-hour and heating oil is 4.8 cents. It becomes expensive per liter. Therefore, a model family with a heating demand of 20,000 kWh will have an additional annual cost of €78 for gas and €96 for heating.

After days of negotiations and budget deadlock German Chancellor Olaf Schultz on Wednesday night reached an agreement with his Finance Minister Christian Lindner and his deputy Robert Haubeck (Greens) on a compromise on the 2024 federal budget. Among other things, this agreement includes a sharp increase in the price of CO2, which will affect the price of gasoline and gas. Canceling the subsidy for network costs will probably lead to an increase in the price of electricity for citizens. By announcing the end of the electricity and gas price braking plan from the beginning of next year, he also emphasized that the government will not leave the citizens alone in this situation.

The Federal Constitutional Court recently Annuls the reallocation of 60 billion euros in the 2021 budget. The money was approved as a corona loan, but has since been used to protect the climate and modernize the economy. At the same time, the judges decided that the government is not allowed to use the emergency loans for the following years in this way. The federal government has done this in several special funds, including the energy price cap. This ruling has led to a severe budget gap and has forced the government to implement austerity policies in many areas, including social services.

The Minister of Finance of Germany also announced that the financial assistance of the country’s government to apply the electricity and gas price ceiling will end at the end of this year.

Meanwhile The results of the latest survey also show that the vast majority of German citizens are worried about the significant increase in the cost of electricity and gas bills in 2024 as a result of the budget crisis created in their country.

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