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MONEY

What to know about German parcel delivery price hikes

People sending packages in Germany face higher costs after Deutsche Post subsidiary DHL announced it will increase prices from July.

A DHL employee carries a package for delivery in Germany.
A DHL employee carries a package for delivery in Germany. Photo: picture alliance/dpa | Sebastian Gollnow

Under the changes, sending some packages will become more expensive, both within Germany and internationally.

Logistics group DHL said the price hikes were due to several factors. 

“Increased transport, delivery and wage costs, as well as general cost increases, make price rises in national and cross-border parcel shipping unavoidable,” the company said. 

Meanwhile, there will no longer be a price advantage for buying parcel and package stamps online for domestic shipments. 

The different prices for labels bought online or in store will remain in place for international-bound parcels.

The changes come into force on July 1st.

READ ALSO: EXPLAINED: Why people in Germany are being charged to receive small parcels from outside the EU

What are the changes for domestic-bound packages?

The branch and online prices in the product category ‘Päckchen S’ will rise to €3.99 from €3.79.

The price for ‘Päckchen M’ will be €4.79 from July, up from €4.50 for a store-bought label, and €4.39 online. 

The price for the two-kilogram parcel, which is only available online, will rise to €5.49 from €4.99.

Packset and Pluspäckchen products will also cost slightly more due to the increase in paper costs, said DHL. 

However, the price to send a 5kg parcel is going down – it will be €6.99 instead of €7.49.

Prices for the 10kg and 31.5kg parcels will remain unchanged.

A DHL delivery worker carries packages.

A DHL delivery worker carries packages. Photo: picture alliance/dpa/dpa-Zentralbild | Jan Woitas

What’s changing for sending packages abroad?

The cost of many cross-border parcel and small package shipments from Germany will also increase. The logistics company said that’s because of the hike in flight rates as well as higher costs charged by other delivery firms.

The firm said it was “partially passing on to customers what are in some cases steep increases in airfares and the substantial rise in costs charged by delivery partners abroad”. 

There are particularly large price hikes for shipments to the United States.

For instance, from July it will cost €49.99 to send a package weighing up to 5kg to the US (zone 5 in Deutsche Post’s price chart) rather than €38.99. The online price for the same product will be €47.99 instead of €36.99.

The price of sending a packet weighing up to 10kg to the US will go up to €79.99 instead of €54.99. 

For an overview of the new prices, check out this chart. 

READ ALSO: How to challenge high import fees on non-EU parcels in Germany

Are there any other changes to know about?

Deutsche Post says the €1.70 customs data entry fee for shipments to non-EU countries franked at retail outlets will no longer apply from July 1st.

Instead, it will be incorporated directly into the respective retail outlet prices for non-EU shipments at a rate of €1.

The company is also pushing its sustainability strategy, with its GoGreen service being included for all products from July 1st, 2022, without customers having to pay a surcharge. “This is already the case for domestic parcel shipments,” said the firm. 

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For members

ENERGY

EXPLAINED: How much will Germany’s gas levy cost you?

On Monday, gas operators in Germany announced an additional charge of 2.419 cents per kilowatt hour which will come into force in October. Here’s what you need to know.

EXPLAINED: How much will Germany’s gas levy cost you?

What’s going on?

Households in Germany will face significantly higher gas prices this autumn and winter.

The gas transmission system operator, Trading Hub Europe, announced on Monday that German gas suppliers will be allowed to add 2.419 cents per kilowatt hour to the price of gas from October onwards, to help them cope with hugely increased procurement costs. 

The surcharge is aimed at sharing out the soaring costs borne by energy importers after Russia drastically decreased gas supplies to Germany after the invasion of Ukraine.

Gas importers have so far taken on the additional costs themselves, but a new rule agreed by the government allows them to pass on ballooning costs via the levy to households from October 1st.

How much more are you likely to pay for gas?

For an average family house of 160 square metres, which uses 23,000 kilowatt hours per year, this surcharge would amount to around an extra €556.

Those who live in an apartment of 85 square metres, which uses an average of 12,000 kilowatt hours per year, will be likely to pay an extra €290 annually.

Those living in an apartment of 50 square metres are likely to pay an extra €121 to €169 per year.

The levy will primarily affect property owners with gas heating, as well as tenants living in households that have floor heating and their own gas contracts.

What is not yet clear, however, is how households in Germany supplied with Fernwärme (district heating) will be affected by the levy. 

A gas bill in front of a meter, which reads: “your gas bill in detail”. Photo: picture alliance/dpa | Bernd Weißbrod

In many places, this type of energy supply comes from gas-fired power plants and operators of such power plants are supposed to pay the surcharge.

So far operators have no legal means of passing on these costs to their customers, but the German government wants to look into this issue, so this is likely to change. 

Will VAT be charged on the levy?

The German government wants to waive the value-added tax on gas, but it needs permission from the EU to do so. Finance Minister Christian Lindner (FDP) wrote to the Commission on Friday asking for an exception to EU law to be granted so that Germany does not have to charge VAT on the state gas levy.

READ ALSO: Germany pledges inflation relief tax package worth €10 billion

In a letter to Finance Commissioner Paolo Gentiloni, the FDP politician wrote: “VAT on state-imposed levies drives up prices and meets with increasing resistance from the population, especially in the current, exceptional situation.”

It is not yet clear how the Commission is likely to respond to this request.

Haven’t gas prices already increased?

Yes. Numerous gas suppliers have already increased their prices more than once throughout the course of the year.

Most recently, suppliers such as Rheinenergie, Wuppertaler Stadtwerke and Energieversorgung Oberhausen announced significant rate increases. “There is a major wave of price increases,” says energy expert Udo Sieverding from the consumer centre of North Rhine-Westphalia.

In the case of Rheinenergie, for example, an average household, with 15,000 to 20,000 kilowatt hours of annual consumption, is already paying just under €2,000 in additional annual costs after the latest round of price hikes, even before the levy.

Will there be government help for consumers?

Economics Minister Robert Habeck (Greens) announced that the third relief package from the German government will be in place by the start of the levy on October 1st. The traffic light coalition has also agreed on a reform of the housing allowance and is planning a permanent heating allowance for low-income households.

In addition, the new ‘citizen’s allowance’ – a replacement of the current unemployment benefits system – is due to come into effect next year, and promises higher standard rates for the unemployed. 

READ ALSO: Bürgergeld: What to know about Germany’s unemployment benefits shake-up

At the beginning of September, Chancellor Olaf Scholz (SPD) will meet with social partners and other experts as part of a concerted action to discuss relief measures. The main focus will be on supporting lower-income groups that are hit hardest by high energy costs.

The SPD and welfare associations are proposing, for example, monthly direct payments to recipients of basic security and housing allowances and a price cap for a basic quantity of gas is also being discussed.

Economics Minister Robert Habeck explained: “Especially for those who don’t have much, it’s a heavy burden that is impossible or difficult to bear.” 

On Monday, Chancellor Olaf Scholz (SPD) tried to reassure people via Twitter that the government would help balance out the extra costs. 

In the tweet, he said, “we won’t leave anyone alone with the higher costs”. At the same time, Scholz admitted: “It’s getting more expensive – there’s no beating around the bush. Energy prices continue to rise.” So far, he said, government aid of more than €30 billion has already been agreed upon. 

READ ALSO: Germany’s Scholz pledges more relief for lowest earners

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