Rising energy prices: German government promises new relief package

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

Promises of further relief on energy costs for consumers

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

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

Government considering fuel subsidy

The exact details of the package are yet to be announced, but Habeck promised relief for electricity and heating bills, and transport. He said that attention would also be paid to energy efficiency and savings - for instance to help people reduce their fuel consumption when driving - and that the government would provide financial incentives to encourage companies and consumers to be more efficient. 

According to a report in Bild, Federal Finance Minister Christian Lindner is also considering a temporary subsidy on the price of fuel to help support people at the pump. In its current iteration, gas stations would deduct the subsidy from people’s bills and then apply for a refund from the tax authorities.