Best wishes from Germany: the Carbon Tax increases and fuel prices rise by 10 cents. Inflationary flare-up coming
Germany wishes its citizens a happy new year with a nice increase in the prices of fuel and many energy products linked to an increase in the carbon tax on CO2 emissions. The decision was taken last June and provided for the increase of the Carbon Tax on road transport and domestic use to 45 Euros per tonne of Co2, with the forecast of reaching 50 Euros per tonne in 2025.
The increase in fuel prices was, according to the German motorists' association , approximately 1.6 cents per liter for petrol and 4.6 cents per liter for diesel, although it seems that the increases are higher at many pumps, reaching even to 10 cents with peaks of 14 cents, as reported by some newspapers.
What appears to be that the increases were anticipated with respect to the introduction of the tax increases and coincided with an increase due to the trend in international fuel prices, as well as a certain cunning of the pump managers. Already on December 26th prices were increasing, after months of decline.
The increase in this tax will probably lead to an inflationary flare-up that will be felt in the January 2024 data. We therefore remember that if German inflation increases in this period it will not be due to an economic revival, but due to the effect of external factors multiplied by internal fiscal decisions.
The government has made a mileage tax relief available to commuters to obtain on their tax return. Commuters can indicate the costs of the journey to work in their tax return and thus obtain 30 cents for the first 20 kilometers and 38 cents from the twenty-first kilometre. A complicated system that aggravates the bureaucracy that citizens have to face. An unsatisfactory solution, but the German government is in the hands of social democrats and greens who evidently want to use these funds for their energy transition. And the German citizen just has to pay.
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The article Greetings from Germany: the Carbon Tax increases and fuel prices rise by 10 cents. Incoming inflationary flare-up comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/auguri-dalla-germania-aumenta-la-carbon-tax-e-i-prezzi-dei-carburanti-crescono-di-10-centesimi-fiammata-inflazionistica-in-arrivo/ on Tue, 02 Jan 2024 10:21:40 +0000.