Sources in The Hague have confirmed to Het Parool that, from July 1, drivers will have to pay more to refuel their cars, as the Dutch government has taken the decision not to extend the current tax cuts on petrol. 

Dutch government unlikely to extend cap on excise duties

Last March, in order to limit the impact of the rapidly rising cost of oil following Russia’s invasion of Ukraine, the government announced it was temporarily cutting the tax rate on fuel and energy.  While the VAT cap on energy expired at the end of 2022, the reductions in excise duties on fuel remain in effect until the end of June 2023. 

But now that the government is putting together its Spring Memorandum (voorjaarsnota), the cabinet is reassessing whether the current measures will remain in place beyond the summer. According to Het Parool, however, “none of the government parties has so far [suggested] keeping excise duties low for longer.” The measure is therefore likely to expire at the end of June, meaning fuel prices will rise significantly on July 1. 

“All in all, the chance is small that we can continue to give that discount,” an inside source told Het Parool. “Because it is already quite a puzzle to find money for other things that we consider more important.” The newspaper reports that, from July 1, the price for a litre of petrol will increase by 13,8 cents. Diesel prices will rise by 9,9 cents per litre, and LPG by 6 cents per litre. 

Voorjaarsnota could also include changes to Dutch health insurance

The decision comes as Prime Minister Mark Rutte and his cabinet struggle to fill a gap in the budget. With significant funds required to cover the costs of climate measures and the reception of asylum seekers, the government is looking for ways to come up with the cash. 

Another plan that is currently on the table is increasing the deductible (eigen risico) for Dutch health insurance, RTL Nieuws reports. The proposal suggests increasing the mandatory deductible - which is currently frozen at 385 euros - to 485 euros by 2027.

The cabinet aims to conclude budget negotiations by the end of next week, although it’s not yet certain when the government will present its 2023 Spring Memorandum.

Thumb: Jan van der Wolf via Shutterstock.com.