Traffic light factions wave through higher CO2 price
The Bundestag implements the first elements of the budget agreement. Among other things, the traffic light coalition decides to increase the CO2 price for petrol, gas and heating oil. Consumers are likely to notice this at the filling station, among other things.
Just a few days after reaching an agreement in the weeks-long dispute over the 2024 budget, the traffic light coalition is implementing the first resolutions that will take effect for the coming year. With the votes of the SPD, Greens and FDP, the Bundestag decided to raise the price of carbon dioxide (CO2), which is charged on petrol, gas and heating oil. This is likely to increase fuel and heating costs with fossil fuels.
Parliament decided that from January, 45 euros per tonne of CO2 emitted will be payable. In 2025, the CO2 price will then rise to 55 euros per tonne. It is currently 30 euros. The Bundestag thus implemented the first part of the traffic light government's major budget package.
Due to the high energy prices at the turn of the year, the traffic light government actually only wanted to increase the CO2 price to 40 euros. The five-euro increase had been agreed in order to reduce a gap of around 17 billion euros in the 2024 budget with the expected additional revenue of around one billion euros. Following the budget ruling, the government is now returning to the steeper path that the grand coalition had already set out years ago. The revenue from the CO2 price will flow into the Climate and Transformation Fund, which will be used to finance projects for climate protection, among other things.
Consumers must expect fuel, oil and gas prices to rise. According to the ADAC, a liter of petrol could become around 4.3 cents more expensive at the turn of the year. Diesel drivers should expect an increase of around 4.7 cents. According to calculations by the comparison portal Verivox, gas will increase in price by 0.39 cents per kilowatt hour and heating oil by 4.8 cents per liter. A typical family with a heating requirement of 20,000 kilowatt hours would have additional annual costs of 78 euros for gas and 96 euros for oil heating.
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The German federal parliament, comprising the traffic light coalition parties (SPD, Greens, and FDP), has approved a significant increase in the CO2 price, which is expected to impact the cost of petrol, gas, and heating oil. This rise in prices, following the decision in the budget agreement, will be noticeable at fuel stations and other energy supply points.
Source: www.ntv.de
