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Germany's conservatives, SPD set to scrap gas storage levy
Published by Global Banking & Finance Review®
Posted on March 26, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 26, 2025
2 min readLast updated: January 24, 2026
Germany's CDU/CSU and SPD agree to abolish the gas storage levy to lower energy costs, pending party leader approval.
BERLIN (Reuters) - Germany's conservative CDU/CSU and Social Democrats (SPD) have agreed to abolish a gas storage levy for all consumers in a bid to lower energy prices, according to a preliminary document seen by Reuters on Wednesday.
Berlin introduced the measure in 2022 to cover the high costs of replacing Russian gas after Moscow cut deliveries. However, due to pressure from Germany's neighbours, the government decided to apply the levy exclusively to German consumers.
Last week, Germany's industry body BDI called for adjusting the levy to lower natural gas prices in Germany and bridge the cost gap for industry compared to foreign competitors.
"We are abolishing the gas storage surcharge for everyone. We will introduce appropriate instruments to ensure secure and more cost-effective gas storage refills," the document of the two parties' working group said, without pinning an exact date for the plans.
Abolishing the levy would cost the government approximately 4.1 billion euros ($4.4 billion) if implemented in the second half of the year. However, this financial decision still requires approval from the top party leaders.
Energy companies have been also demanding lower national storage targets and introducing more flexible EU-level requirements, saying the rigid legal mandates were distorting the market and creating counterproductive incentives.
($1 = 0.9273 euros)
(Reporting by Riham Alkousaa and Holger Hansen; editing by David Evans)
The article discusses Germany's plan to abolish the gas storage levy to reduce energy prices.
The levy was introduced in 2022 to cover costs after Russia cut gas deliveries.
Abolishing the levy could cost the German government approximately 4.1 billion euros.
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