German govt announces energy relief package

Berlin, March 25 Germany's governing parties have agreed on an extensive package of relief measures to cushion the energy price rises.

Employees subject to income tax are to receive a one-time energy price allowance of 300 euros ($330) as a supplement to their salary, according to the government.

The energy tax on diesel and gasoline is to be temporarily reduced by 14 euro cents and 30 euro cents per liter, respectively, reports Xinhua news agency.

To make local public transport more affordable, a special 90-day ticket will be made available that will cost nine euros per month.

It is necessary to "protect people and the economy in the short term and for a limited period of time in the face of these enormous price increases", said Finance Minister Christian Lindner.

To increase energy efficiency, all newly installed heating systems are to be powered by 65 per cent renewable energy from 2024, one year earlier than previously planned.

Last week, the government already adopted several measures, including an increase in the basic tax-free allowance and higher mileage allowances for long-distance commuters.

The first package of measures is worth more than 15 billion euros.

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