Finance

Czechs get assurances German gas levy to be abolished, deputy minister says

Published by Global Banking & Finance Review

Posted on December 17, 2024

2 min read

· Last updated: January 27, 2026

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PRAGUE (Reuters) - The Czech Republic has received assurances from Germany that it will abolish a gas transit fee this week or in early January, news agency CTK reported, citing a deputy industry

Germany to End Gas Levy Impacting Czech Republic Soon

PRAGUE (Reuters) - The Czech Republic has received assurances from Germany that it will abolish a gas transit fee this week or in early January, news agency CTK reported, citing a deputy industry minister.

Germany's neighbours, also including Austria and Slovakia, want the fee waived as it pushes up prices as they seek to shift away from Russia gas.

"We were assured by Germany that the fee has already been abolished by the government and is awaiting approval in the German Bundestag, which should take place this week," CTK cited Czech deputy industry minister Stepan Hofman as saying Monday evening on the sidelines of meetings in Brussels.

"If it doesn't happen this week, then it will probably happen in January, with the effect being retroactive from January 1."

Germany's economy ministry did not immediately respond to a request for comment. A ministry official said last week a retroactive law that would restrict a gas storage levy so that it applies only to German customers was possible at start of next year.

Berlin introduced the fee to cover the high costs of replacing Russian gas after Moscow reduced deliveries in 2022.

German system operator Trading Hub Europe has said the tariff will rise by a fifth next year on the assumption it is restricted to German customers only.

The flow of gas across the Czech-German border has fallen in recent months as traders seek cheaper gas via the Slovakia transit, mostly from Russia.

In a joint European Union paper this month, Austria, the Czech Republic and Slovakia said the scheduled expiry of a Russian deal to supply gas to Europe via Ukraine at the end of the year had made it more urgent that the German levy is scrapped.

(Reporting by Jason Hovet, additional reporting by Friederike Heine; Editing by Kirsten Donovan)

Key Takeaways

  • Germany plans to abolish its gas transit fee soon.
  • The fee affects Czech Republic, Austria, and Slovakia.
  • The change aims to ease the transition from Russian gas.
  • The levy may be retroactively abolished from January 1.
  • The decision awaits approval from the German Bundestag.

Frequently Asked Questions

What is the main topic?
The main topic is Germany's plan to abolish a gas levy affecting the Czech Republic and other neighboring countries.
Why is the gas levy significant?
The levy increases gas prices for Germany's neighbors, complicating their shift away from Russian gas supplies.
When will the gas levy be abolished?
The levy is expected to be abolished soon, with retroactive effect from January 1, pending approval from the German Bundestag.

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