Germany's governing coalition has unveiled measures to help households struggling with skyrocketing electricity prices, including a three-month subsidy for petrol and diesel, Reuters reports.

A deal should ease tensions over how to respond to rising energy prices.

Finance Minister Christian Lindner told reporters that the exact size of the package, which also includes tax breaks, was difficult to determine as some details had yet to be clarified.

However, it should be similar in size to the first tax relief package, worth about 13 billion euros, agreed last month, he said.

The agreement provides for a one-time surcharge on the price of electricity in the amount of 300 euros for income tax payers as a surcharge on their wages.

Families will receive a lump sum of €100 per child, which will be doubled for low-income families, and the fuel tax will be reduced to the European minimum rate for three months.

As a result, the price of a liter of gasoline will be reduced by 30 cents and diesel fuel by 14 cents within three months, Lindner said.

The cost of these measures will be covered by this year's supplementary budget, which will be made public next month, which will also include funding for humanitarian aid to Ukrainian refugees and modernization of the German military.