The Dutch government is resisting calls to lower fuel taxes despite rising prices that are now exceeding levels seen during the 2022 energy crisis, a decision that is prompting cross-border fuel tourism and raising concerns about the viability of Dutch fuel stations. As of today, March 19, 2026, Prime Minister Rob Jetten has declined to intervene, even as gasoline and diesel prices surge following the escalation of conflict in Iran.
The reluctance to cut taxes stems from the impact on state revenue. Value Added Tax (VAT) receipts increase automatically as fuel prices rise, providing a significant boost to the national treasury. A tax reduction would diminish this income, a factor weighing heavily on the government’s decision-making, according to sources within the Ministry of Finance.
The price disparity between the Netherlands and neighboring Belgium is particularly stark. Currently, diesel and gasoline in the Netherlands are up to 60 cents per liter more expensive than in Belgium, driving a surge in Dutch motorists crossing the border to fill up. Some Belgian gas stations near the Dutch border are experiencing hours-long queues according to reports from the Belgian fuel industry federation, Brafco.
Brafco director Johan Mattart explained that Belgium and Luxembourg are the only European countries with maximum price controls on petroleum products. “A petrol station owner may not exceed that maximum price,” he stated. Belgium employs a “k-factor” correction mechanism that dampens the impact of sharp price increases. “the price of diesel today has risen by ‘only’ 8.8 cents per liter, whereas the actual price should have been more than 16 cents more expensive,” Mattart said. He added that prices at the pump do not reflect real market prices in Belgium.
The impending fuel tax increase of 26 cents per liter, scheduled for January 1, 2026, has already sparked warnings from industry groups. The ANWB and Drive Nederland, representing 1500 fuel stations, have urged the government to scrap the planned increase and halt the annual indexation of fuel taxes, fearing widespread closures of fuel stations. Pauline van Neck has argued that the higher excise duty will ultimately reduce tax revenue as people drive less.
Other European nations are taking different approaches. Italy has temporarily reduced fuel taxes by €0.25 per liter for 20 days, and Austria has implemented a reduction of €0.05 per liter. Several countries, including Slovenia, Poland, Hungary, and Spain, already have fixed or capped fuel prices, while Malta maintains a constant price of €1.34 per liter.
The Dutch government has not yet responded to the calls for a tax reduction, and no further announcements regarding fuel policy are scheduled at this time.
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