German Lower House approves tax on greenhouse emissions for fuels, heating, gas

FILE PHOTO: An exhaust pipe of a car is pictured on a street in a Berlin, Germany, February 22, 2018. REUTERS/Fabrizio Bensch

FRANKFURT (Reuters) - Germany’s lower house of parliament on Thursday approved a tax on greenhouses gas emissions to be levied in stages from 2021, raising retail prices of car fuels such as gasoline and diesel, heating oil and natural gas.

The move, which entails alterations to a law on fuel emissions trading, envisages a tax of 25 euros ($29.41) per tonne of carbon dioxide equivalent in 2021, rising to 55 euros per tonne in 2025.

Gasoline prices will rise by 7 cents per litre and by 8 cents per litre for diesel from next year.

($1 = 0.8501 euros)

(This story corrects to read lower (not upper) house in headline and paragraph 1)

Reporting by Markus Wacket, writing by Vera Eckert, editing by Jason Neely