1 billion euros earmarked to support Dutch residents amid oil crisis

A support package totalling 1 billion euros is planned to help residents in the Netherlands with the impact of the oil crisis caused by the war in the Middle East. The plan includes higher travel allowances and more emergency energy funds for low-income households, but no cuts to petrol prices. 

No petrol price cuts in Dutch gov’t support package

With many feeling the impact of the rising fuel and energy prices caused by the US-Israeli attacks on Iran, the Dutch government has been mulling measures to combat price hikes. A support package of around 1 billion euros will be introduced with at least three measures to help residents. 

Sources revealed to NOS that the government is still not including a petrol tax cap in the plans. Despite petrol stations urging the government to lower the excise duty on petrol, as Germany recently did, the cabinet is maintaining its decision to hold off on this measure.

Lowering the price of a litre of petrol by 10 cents would cost the government 1 billion euros while providing little relief, and with uncertainties around how long the situation will last, the cabinet wants to avoid haemorrhaging money too soon. A petrol tax cap would also encourage more driving, which is something the state wants to avoid.

Cheaper travel expenses and more funds for energy

Instead, the support package will include an increase in the tax-free travel allowance for workers from 23 cents to 25 cents. According to NOS, this could save employees who have to travel for work 8 euros per week if they travel 400 kilometres weekly. 

Road tax for commercial vehicles with grey licence plates will also be reduced by 50 percent to help small business owners. Other than making travel a bit more affordable, 50 million euros will go towards the energy bills of low-income households in the Emergency Energy Fund. The government also wants to allocate funds for better insulation to reduce energy bills.

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