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Gas price shock from April: That's why the gas price will rise significantly next month

2024-03-27T08:34:45.512Z

Highlights: Gas price shock from April: That's why the gas price will rise significantly next month. As of: March 27, 2024, 9:24 a.m By: Amy Walker CommentsPressSplit Starting next month, the federal government's relief for gas, which was decided in the wake of the energy crisis, will no longer apply. Gas could become up to an average of 17 percent more expensive for consumers in 2024. Gas prices rise due to higher taxes: 11 percent more.



As of: March 27, 2024, 9:24 a.m

By: Amy Walker

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Press

Split

Starting next month, the federal government's relief for gas, which was decided in the wake of the energy crisis, will no longer apply.

This means that the price will rise significantly from April 1st.

Berlin – Things are set to become even more expensive for gas customers in Germany: From April 1st, a higher VAT of 19 percent will apply again on natural gas.

In the wake of the energy crisis, the traffic light coalition decided in 2022 to temporarily reduce the sales tax for gas to seven percent.

However, this phase of relief is now over - which can lead to additional costs of hundreds of euros per year for gas customers.

Gas prices rise due to higher taxes: 11 percent more

According to calculations by the comparison portal Verivox, an average family of four with a gas consumption of 20,000 kilowatt hours (kWh) per year has additional costs of 233 euros per year.

Anyone who has a basic service tariff will feel the increase even more clearly; Verivox charges additional costs of almost 300 euros per year for the same sample household.

Gas could become up to an average of 17 percent more expensive for consumers in 2024.

© Sven Hoppe/dpa

“The full VAT rate will suddenly increase the price of gas by 11 percent.

As a result of the change, customers do not have a special legal right of termination, so they should check their contract as early as possible and look for the cheapest possible tariff.

There is currently an average of 37 percent between the expensive basic supply and cheap gas tariffs,” says Thorsten Storck, energy expert at Verivox, according to a statement.

The CO₂ price will determine the gas price even more clearly in the future

But that's not all.

When it comes to the price of gas, the CO₂ price in particular must be taken into account, which has risen significantly again this year and therefore also affects the price of gas.

At the beginning of the year, the traffic light government increased the CO₂ price to 45 euros per ton of CO₂.

The tax was originally supposed to rise to 40 euros - from 30 euros in 2023. The CO₂ tax mainly affects fuel and energy costs for consumers.

The CO₂ price then increases as follows:

Year

CO2 price per ton

2023

30 euro

2024

45 euros

2025

50 Euros

2026

55 to 65 euros

2027

free pricing!

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But how does the current CO₂ tax work?

Broken down very simply, a tax has been levied on the CO₂ that is blown into the air for several years.

This is regulated via so-called emission certificates.

For example, anyone who fills up their car with gasoline also buys as many certificates as they need for the use of this climate-damaging substance.

The more CO₂ you consume, the more certificates you buy, the more expensive it becomes.

This should lead to a change in behavior in the long term: If gasoline becomes more and more expensive due to the purchase of expensive certificates, the consumer may at some point think about an electric car.

Consumers should consider other heating options

The increase is currently set by the federal government as part of the National Fuel Emissions Trading Act (BEHG).

The BEHG applies until 2026. After that, Germany will enter European emissions trading, or ETS for short.

This means that the CO₂ price is no longer set by the government, but is determined on the market based on supply and demand.

From 2027 onwards, the price will rise significantly again because the aim is to get consumers and companies to change their behavior.

The number of certificates is being artificially reduced, so the price is likely to skyrocket.

So if the gas price is already bothering you, you should, if possible, consider other heating options that are fossil-free.

Source: merkur

All news articles on 2024-03-27

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