Rising fuel and heating costs
Traffic light groups are calling for a higher CO2 price
December 15, 2023, 12:03 p.m
The Bundestag is implementing the first components of the budget agreement. Among other things, the traffic light coalition decides to increase the CO2 price for fuel, gas and heating oil. Consumers are likely to notice this at the gas station, among other places.
Just a few days after the agreement in the weeks-long dispute over the 2024 budget, the traffic light coalition is implementing the first resolutions that will be effective for the coming year. With the votes of the SPD, Greens and FDP, the Bundestag decided to increase the price of carbon dioxide (CO2) for fuel, gas and heating oil. This is likely to increase fuel and heating costs using fossil fuels.
Parliament decided that from January 45 euros per ton of CO2 emitted will be due. In 2025 the CO2 price will rise to 55 euros per ton. Currently it is 30 euros. The Bundestag thus implemented the first part of the traffic light government’s large budget package.
The traffic light actually only wanted to increase the CO2 price to 40 euros at the turn of the year because of the high energy prices. The increase of five euros was 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. After the budget verdict, we are now returning to the steeper path that the grand coalition had already set years ago. The income from the CO2 price flows into the climate and transformation fund, from which projects for climate protection, among other things, are financed.
Consumers must expect rising fuel, oil and gas prices. According to the ADAC, a liter of gasoline could become around 4.3 cents more expensive at the turn of the year. Diesel drivers would have to expect an increase of around 4.7 cents. According to calculations by the comparison portal Verivox, gas becomes more expensive by 0.39 cents per kilowatt hour, heating oil by 4.8 cents per liter. A model family with a heating requirement of 20,000 kilowatt hours would therefore have additional annual costs of 78 euros for gas and 96 euros for oil heating.