Germany Scraps Gas Levy to Relieve Energy Costs

Germany's cabinet approves a draft bill to abolish a gas storage levy aimed at cutting energy costs. Initially introduced in 2022 to offset the expense of replacing Russian gas, the levy will now be scrapped to provide significant financial relief to consumers and bolster national industries.

In a decisive move to alleviate soaring energy expenses, the German cabinet has approved a draft bill to eliminate the gas storage levy for all consumers. The decision marks a strategic shift in Germany's approach to energy cost management, reflecting its struggle to adjust after decades of dependence on inexpensive Russian gas.

Introduced amid the 2022 energy crisis to subsidize the cost of sourcing non-Russian gas supplies, the levy had become a financial burden on German consumers. This policy change follows regional pressure, which prompted Germany to reconsider the levy that was initially shared more broadly.

The removal of the levy is projected to provide substantial economic relief, with government figures estimating savings of approximately 3.4 billion euros. This would result in an annual saving ranging from 30 to 60 euros for the average four-person household.

(With inputs from agencies.)