The German coalition government has reached an agreement on a new package to deal with rising energy prices. The country plans to reduce the tax on fuel to the European minimum for three months, which is expected to cut prices at pumps by €30c/l for petrol and by €14c/l for diesel. In addition, workers who pay income tax will receive a one-off energy price allowance of €300 as a supplement to their salaries and families will receive a one-time bonus of €100 per child, which doubles for low-income families. A €100m/person allocation will also be granted to recipients of social benefits to cushion higher energy prices. Finally, a €9/month public transport ticket will be offered for 90 days.
These measures are part of a broader plan aimed at reducing Germany's dependency on fossil fuels and at boosting its energy security. The country will support the procurement of LNG in the short term by accelerating approval procedures, promote biogas and the hydrogen economy, and will seek to switch to renewables in all sectors in the medium and long term. Germany will also promote energy savings in businesses and new buildings ("energy efficiency standard 55" mandatory as of 1 January 2023, minimum requirement of 65% renewable in every newly installed heating system as of 1 January 2024).
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