Fuel Excise Duty Reduction Extended
The Dutch government has decided to extend the current reduction in excise duties on petrol, diesel, and LPG until January 1, 2027. This move prevents a previously anticipated price increase at the pumps that would have taken effect from January 1, 2026, had the temporary reduction expired. The decision aims to keep fuel affordable for consumers and businesses across the Netherlands.
The excise duty rates will remain at their 2025 levels: €0.79 per litre for petrol, €0.52 per litre for diesel, and €0.19 per litre for LPG. This extension is projected to cost the national treasury approximately €1.6 billion in foregone revenue.
Context of the Fuel Tax Policy
The initial reduction in fuel excise duties was introduced in April 2022 as a response to soaring energy prices following geopolitical events. Since then, the measure has been renewed annually to mitigate the impact of high fuel costs on purchasing power. Without this latest extension, petrol prices were expected to rise by more than 25 cents per litre.
Support for Public Transport
In a separate but related development, Dutch Members of Parliament (MPs) demonstrated their commitment to public accessibility by supporting a proposal in September 2023 to allocate an additional €420 million to public transport. This funding was specifically earmarked to prevent an increase in train, tram, and bus ticket prices. Of this amount, €300 million was designated for regional public transport, aiming to ensure bus lines remain operational and to reverse anticipated fare hikes.
Parliamentary Backing
The proposal for public transport funding, put forward by ChristenUnie leader Mirjam Bikker, received broad support from various political parties in the Tweede Kamer (the lower house of Parliament), including all coalition parties, as well as GroenLinks/PvdA, PVV, SP, SGP, Volt, and BBB. This initiative underscores the government's dual approach to mobility: easing the burden on motorists through tax reductions while simultaneously bolstering public transport services to ensure affordability and accessibility for all citizens.
5 Comments
Bermudez
Encourages car dependency instead of sustainable urban planning.
Africa
Short-sighted policy. We need to think long-term climate goals, not just immediate costs.
Coccinella
This decision provides immediate financial breathing room for commuters and businesses, which is positive. However, I worry about the long-term environmental consequences and whether this money could be better spent on accelerating green energy transitions.
Muchacho
Smart move by the government, keeping costs down for families.
ZmeeLove
Bad for the environment! This encourages more car use, not less.