diff --git a/rules/build_electricity.smk b/rules/build_electricity.smk
index 133ceb6e..340c9d28 100644
--- a/rules/build_electricity.smk
+++ b/rules/build_electricity.smk
@@ -233,6 +233,22 @@ rule build_renewable_profiles:
     script:
         "../scripts/build_renewable_profiles.py"
 
+rule build_monthly_prices:
+    input:
+        co2_price_raw="data/validation/emission-spot-primary-market-auction-report-2019-data.xls",
+        fuel_price_raw="/home/lisa/Documents/pypsa-eur/data/validation/energy-price-trends-xlsx-5619002.xlsx"
+    output:
+        co2_price="data/validation/CO2_price_2019.csv",
+        fuel_price="data/validation/onthly_fuel_price.csv"
+    log:
+        LOGS + "build_monthly_prices.log",
+    threads: 1
+    resources:
+        mem_mb=5000,
+    conda:
+        "../envs/environment.yaml"
+    script:
+        "../scripts/build_monthly_prices.py"
 
 rule build_hydro_profile:
     input:
@@ -269,6 +285,7 @@ rule add_electricity:
         powerplants=RESOURCES + "powerplants.csv",
         hydro_capacities=ancient("data/bundle/hydro_capacities.csv"),
         geth_hydro_capacities="data/geth2015_hydro_capacities.csv",
+        monthly_fuel_price="data/monthly_fuel_price.csv",
         load=RESOURCES + "load.csv",
         nuts3_shapes=RESOURCES + "nuts3_shapes.geojson",
     output:
diff --git a/scripts/build_monthly_prices.py b/scripts/build_monthly_prices.py
new file mode 100644
index 00000000..e1cc57a1
--- /dev/null
+++ b/scripts/build_monthly_prices.py
@@ -0,0 +1,117 @@
+#!/usr/bin/env python3
+# -*- coding: utf-8 -*-
+"""
+Created on Tue May 16 10:37:35 2023
+
+This script extracts monthly fuel prices of oil, gas, coal and lignite,
+as well as CO2 prices
+
+
+Inputs
+------
+- ``data/energy-price-trends-xlsx-5619002.xlsx``: energy price index of fossil fuels
+- ``emission-spot-primary-market-auction-report-2019-data.xls``: CO2 Prices spot primary auction
+
+
+Outputs
+-------
+
+- ``data/validation/monthly_fuel_price.csv``
+- ``data/validation/CO2_price_2019.csv``
+
+
+Description
+-----------
+
+The rule :mod:`build_monthly_prices` collects monthly fuel prices and CO2 prices
+and translates them from different input sources to pypsa syntax
+
+Data sources:
+    [1] Fuel price index. Destatis
+    https://www.destatis.de/EN/Home/_node.html
+    [2] average annual import price (coal, gas, oil) Agora, slide 22
+    https://static.agora-energiewende.de/fileadmin/Projekte/2022/2022-10_DE_JAW2022/2023-02-20_Praesentation_Agora_Jahresauswertung.pdf
+    [3] average annual fuel price lignite, ENTSO-E
+    https://2020.entsos-tyndp-scenarios.eu/fuel-commodities-and-carbon-prices/
+    [4] CO2 Prices, Emission spot primary auction, EEX
+    https://www.eex.com/en/market-data/environmental-markets/eua-primary-auction-spot-download
+
+
+Data was accessed at 16.5.2023
+"""
+
+import pandas as pd
+import logging
+from _helpers import configure_logging
+
+logger = logging.getLogger(__name__)
+
+validation_year = 2019
+
+# sheet names to pypsa syntax
+sheet_name_map = {"5.1 Hard coal and lignite": "coal",
+               "5.2 Mineral oil" : "oil",
+               "5.3.1 Natural gas - indices":"gas"}
+
+# keywords in datasheet
+keywords = {"coal": " GP09-051 Hard coal",
+            "lignite": " GP09-052 Lignite and lignite briquettes",
+            "oil": " GP09-0610 10 Mineral oil, crude",
+            "gas": "GP09-3522 24 Natural gas, when supplied to power plants"
+            }
+
+# import fuel price 2015 in Eur/MWh
+# source for coal, oil, gas, Agora, slide 22 [2]
+# source lignite, price for 2020, scaled by price index, ENTSO-E [3]
+price_2015 = {"coal": 8,
+              "oil": 31,
+              "gas": 21,
+              "lignite": 3.8}  # 2020 3.96/1.04 
+
+def get_fuel_price():
+    fuel_price = pd.read_excel(snakemake.input.fuel_price_raw,
+                               sheet_name=list(sheet_name_map.keys()))
+    fuel_price = {sheet_name_map[key]: value for key, value in fuel_price.items()
+     if key in sheet_name_map}
+    # lignite and hard coal are on the same sheet
+    fuel_price["lignite"] = fuel_price["coal"]
+    
+    def extract_df(sheet, keyword):
+        # Create a DatetimeIndex for the first day of each month of a given year
+        dti = pd.date_range(start=f'{validation_year}-01-01',
+                            end=f'{validation_year}-12-01', freq='MS')
+        # Extract month names
+        month_list = dti.month
+        start = fuel_price[sheet].index[(fuel_price[sheet] == keyword).any(axis=1)]
+        df = fuel_price[sheet].loc[start[0]:start[0]+18,:]
+        df.dropna(axis=0, inplace=True)
+        df.iloc[:,0] = df.iloc[:,0].apply(lambda x: int(x.replace(" ...", "")))
+        df.set_index(df.columns[0], inplace=True)
+        df = df.iloc[:, :12]
+        df.columns = month_list
+        return df
+    
+    m_price = {}
+    for carrier, keyword in keywords.items():
+        df = extract_df(carrier, keyword).loc[validation_year]
+        m_price[carrier] = df.mul(price_2015[carrier]/100)
+    
+    pd.concat(m_price, axis=1).to_csv(snakemake.output.fuel_price)
+
+def get_co2_price():
+    # emission price
+    CO2_price = pd.read_excel(snakemake.input.co2_price_raw, index_col=1,
+                              header=5)
+    CO2_price["Auction Price €/tCO2"].to_csv(snakemake.output.co2_price)
+
+
+if __name__ == "__main__":
+    if "snakemake" not in globals():
+        from _helpers import mock_snakemake
+        snakemake = mock_snakemake("build_monthly_prices")
+        
+    configure_logging(snakemake)
+    
+    get_fuel_price()
+    get_co2_price()
+    
\ No newline at end of file