Title: Upgraded CO2 Price Approved by Bundestag: Brace for Higher Heating and Fuel Bills from 2024
The German Parliament, known as the Bundestag, has elected to elevate the CO2 price applied to fuel, gas, and heating oil. From January 2024, instead of paying 30 euros per tonne of CO2 emitted, a new fee of 45 euros will be levied. This move is part of the traffic light government's extensive financial package.
In light of this development, many households may observe a hike in their energy bills starting from the next year. The price increase in heating oil and gas will be directly influenced by the Bundestag's decision.
The increase in CO2 price corresponds with the traffic light government's financial package, which seeks to combat climate change. Specifically, the price of heating oil, a popular household fuel, is poised to escalate by 15 euros per tonne of CO2 emitted, reflecting the Bundestag's decision to raise the CO2 price from 30 euros to 45 euros per tonne.
While exact percentage increases are not provided by sources, it can be inferred that the higher CO2 price will lead to increased household expenses for heating oil and gas. Trends indicate that this change will result in higher energy costs for consumers.
Household gas rates, for instance, have already risen by 43% since early 2024, due to a variety of factors including the reintroduction of the full value-added tax rate and hiked CO2 prices. This trend suggests that households can expect higher costs due to the increased CO2 price. Additionally, the surge in heating oil demand despite falling prices signifies that consumers are highly responsive to price changes.
In conclusion, the Bundestag's approval of a higher CO2 price starting from 2024 will likely lead to a rise in household expenses for heating oil and gas. Exact percentage increases are not specified in sources, but trends suggest that consumers should be prepared for higher energy costs due to the increased CO2 price.
