German Bundesrat approves cheaper travel to counter inflation

Berlin (dpa) – The upper house of the German parliament approved a package of economic relief measures on Friday for residents hit by high inflation, including the introduction of a monthly ticket for public transport for just €9 ($10) nationwide.

The government will set aside €2.5 billion to compensate transport operators for the loss in revenue in the months of June, July and August, according to the legislation.

Transport Minister Volker Wissing said the initiative was an opportunity to promote climate-friendly mobility and would allow public transport operators to improve their services.

Rail and bus operators as well as transport associations are preparing for a huge uptick in the number of passengers, especially in the top holiday destinations, such as Bavaria and the Baltic Sea.

The package also includes a tax cut for petrol and diesel for the same three-month period, taking the energy tax to the minimum level allowed in the European Union.

The cut reduces prices at the pumps by 29.55 cents per litre, or 35.2 cents including value-added tax (VAT) for petrol, and 14 cents per litre or 16.7 cents including VAT for diesel.

The measure aims to bring prices down to pre-crisis levels. Prices at petrol stations soared after Russia’s invasion of Ukraine, but have since noticeably dropped again in Germany.