Cabinet accepts higher petrol prices, refueling much more expensive from 1 July

2023-04-20 15:28:34

The government has previously reduced the excise duty on fuel, but that discount will be waived.Image ANP

A liter of petrol will therefore become 13.8 cents more expensive on 1 July. As a result, the price of petrol is creeping towards 2.15 euros per litre. Diesel rises by 9.9 cents per liter and LPG by 6 cents.

In March 2022, due to the high energy prices, the government decided to accommodate citizens with an excise duty discount. This measure was extended for another six months on 1 January. The cabinet is currently faced with the choice of keeping excise duties low for longer, but none of the government parties has so far made that suggestion in the negotiations on the spring memorandum, government circles say. This means that excise duties will automatically increase on 1 July.

Solid setbacks

This is not entirely strange: the cabinet is dealing with major setbacks. Due to the higher interest rates, the state has to spend more money on loans, billions more must be allocated for the reception of asylum seekers and compensation must be made for the people of Groningen because of the earthquake damage. The reduction in excise duty cost the government 42 million euros on an annual basis.

“All in all, the chance is small that we can continue to give that discount. Because it is already quite a puzzle to find money for other things that we consider more important,” says a coalition source.

The plan now is therefore to increase the excise duty from 1 July. From 1 January, refueling will become even more expensive. Then the excise duty will automatically go up again if the cabinet does not intervene. A liter of petrol then costs another 8.7 cents extra. Diesel and LPG then rise in price by 5.6 and 2.1 cents per litre.

Blending with biofuels

Incidentally, it probably won’t stop there. There are plans on the table to force filling stations to mix their petrol and diesel with more expensive biofuels. As a result, the liter price would rise by another 5 to 10 cents next year. However, the cabinet has yet to make a decision on this.

The price of petrol in the Netherlands consists of about half of excise duty and VAT and the price of diesel for about 40 percent. Thanks to the discount, motorists at the pump saved an average of ten euros on a full tank of petrol, and diesel drivers 7 euros, according to consumer collective United Consumers.

On Thursday evening, Deputy Prime Ministers Sigrid Kaag (D66), Wopke Hoekstra (CDA) and Carola Schouten (ChristenUnie) will again discuss the spring memorandum, the annual adjustment of the national budget, with Prime Minister Mark Rutte (VVD).

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