The global energy crisis has led the German government to impose a new gas tax on households. The increased rates will be effective from October 1st and last till April 2024. Under the new levy an average family of four is expected to pay an additional $489 a year. Businesses will also be subjected to the new charges. German officials said that the gas levy was important to support energy companies. It is said that additional support for households would also accompany the levy. Germany is currently spending about 15 billion dollars in fuel subsidies after having cut taxes on petrol and diesel.
According to the Kale institute for world economy, the surcharge will send Germany’s already soaring inflation rate up by another 0.9% point. The German economy minister Robert Habeck spoke about the levy’s necessity in a press conference on Monday. Habeck stated that this levy is the fairest way to spread out and carry the additional costs they are facing among the public. The alternative isn’t just not having a levy but the alternative would have been the collapse of Germany’s energy market and with that the collapse of large parts of the European market.
Germany used to import more than half of its gas from Russia. Since the Russian invasion of Ukraine the U.S. has imposed sanctions on Russian gas. This has led to an energy crisis in the European continent. Germany now plans to reduce its import of Russian gas by two-thirds by the end of the year. Habeck also spoke on Germany’s dependency on Russian Gas in his press conference.
He said the root cause of dependence of Russian oil is the original political error of becoming so dependent on one supplier that was so willing to stamp on human and citizens’ rights. He also said that the time has come now liberate Germany from this dependency and regain sovereignty which will make it worth it in the end to undertake these efforts in this legislative period. Germany has encouraged its citizens to reduce energy consumption. The government has also introduced energy saving measures in June such as dimming street lights and lowering temperatures of heated swimming pools and turning off fountains.