Chancellor Olaf Soltz assured citizens today that the government will continue to support all those in need in the face of further energy price hikes announced today with a “gas tax” of 2,419 cents/kWh.

“Prices will rise. There is no other choice. Energy prices continue to rise. But with 39 billion euros we are already helping citizens. And we are also preparing a new aid package. We will not leave anyone alone to bear the highest costs,” wrote Mr. -Mr Soltz on Twitter.

Today’s decision, where supplier companies pass on high costs to supply their customers, is estimated at 576 euros per year for a family of four and is already causing a backlash. Social Democratic Party (SPD) leader Lars Klingbeil asked the chancellor for “quick fixes” to relieve citizens and advocated for the introduction of an excess profits tax, the exemption of natural gas surcharges from VAT and the “further development” of a single ticket of 9 euros/month for public transport. “Money should stay with consumers, not go to the state.” he said characteristically.

Economics Minister Robert Humbeck (The Greens) also called for a tax on profits. “You know I think it’s right,” said Mr. Habek, recalling, however, that the liberals (FDP) oppose such a measure.

Referring to the “natural gas levy”, the Minister of Economy spoke of “The fairest possible option” at the same time, he stressed that the additional load “should not exceed the limit.” He also explained that exemption from VAT requires appropriate approval from the European Union, which, according to him, the government is working on.

Trade unions are also asking for additional help for the poor. Ver.di has expressed concern about the “risk of existential hardship” for many households, and its head, Frank Wernecke, has called for a consumer price freeze at 2021 levels. Ulrich Schneider of the Social Security Association said that “What is needed is not a relief package, but a large support package for the poorest.”

Also, according to the German Economic Institute, the tax will cost industrial companies about 5.7 billion euros, with a special burden on chemical and metallurgical companies.

Source: APE/MEB