Dutch government to extend petrol tax cut for 2026

The tax reduction on petrol in the Netherlands, introduced in April 2022, will be extended for another year. The fuel tax cap was set to end in January next year, but the extension will see it continue until the end of 2026.

Petrol tax cut in the Netherlands to be extended

In 2022, the Dutch government introduced lower taxes on petrol and energy to combat the rising cost of living following Russia’s invasion of Ukraine. Earlier this year, it was announced that the temporary tax cap on petrol would come to an end in 2026, costing drivers 25,8 cents per litre more. 

With global fuel prices on the rise, the cabinet was doubtful that it would be able to cover the 1,6 billion euros to continue the scheme. However, according to De Telegraaf, the Minister of Finance Eelco Heinen has found a way to fund an extension of the tax cut for another year, but sources have not confirmed where the money will come from. 

Dutch petrol prices could still rise in long term

The Royal Dutch Touring Club (ANWB) and Drive Nederland called on the government to stop the petrol tax rise from going ahead, warning that it would lead to greater price differences with neighbouring countries. After the extension for 2026, it will be up to the new government to decide what will happen with the petrol tax cut in the following years. 

The budget for 2026 is set to be announced later this month, and the fuel tax cap is likely to be one of the few measures people will have their eyes on, having secured broad support in parliament. Following the departure of the NSC from the caretaker cabinet, outgoing Prime Minister Dick Schoof told parliament that the government would do no more than strictly necessary.