German government promises new relief plan


With the war in Ukraine adding to uncertainty in the energy market, fossil fuel prices hit new highs. The German federal government is now stepping in to further relieve consumers and businesses with a new package of measures. The cost of fuel should also be reduced.

Promises of additional energy cost relief for consumers

The German government wants to provide additional financial aid to help consumers cope with the rising cost of energy. On Sunday evening, Vice-Chancellor Robert Habeck announced he was working on a new set of measures designed to support those struggling with rising utility bills and other costs.

“Extremely high heating costs, extremely high electricity prices, [and] extremely high fuel prices put pressure on households, and the lower the income, the greater the pressure. The federal government will therefore launch another relief program,” said Habeck.

Government plans to subsidize fuel

The exact details of the package have yet to be announced, but Habeck has promised relief for electricity and heating bills, and transportation. He said attention would also be given to energy efficiency and savings – for example to help people reduce their fuel consumption while driving – and that the government would provide financial incentives to encourage businesses and consumers to be more efficient.

According to a report in Picture, Federal Finance Minister Christian Lindner is also considering a temporary fuel price subsidy to help support people at the pump. In its current version, petrol stations would deduct the subsidy from people’s bills and then request a refund from the tax authorities.

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