Fuel costs to rise from January 1, savings redirected to public transport

Fuel taxes will rise slightly on January 1 after the Tweede Kamer, the lower house of Dutch parliament, backed a ChristenUnie proposal to redirect part of the funds originally meant to prolong a one-year tax break for drivers. The reallocated money will instead be used to avert planned budget cuts to public transport. This means that gasoline taxes will rise by 5.5 cents per liter, diesel by 3.6 cents, and LPG by 1.3 cents.

The extension of the fuel tax discount, originally introduced in response to soaring prices after Russia’s invasion of Ukraine, was set to receive more than 1.7 billion euros in next year’s budget from the caretaker cabinet. Following the Tweede Kamer’s changes, roughly 1.3 billion euros will now remain for that purpose.

ChristenUnie MP Pieter Grinwis stated that the price hike is not a disaster, stating that the cuts to public transport would have worse consequences. "It’s not life-threatening. Public transport has been largely overlooked for years."

Grinwis added that many bus lines would have been lost with the cuts to public transport, especially in the rural areas where residents are dependent on a single bus line. He mentioned that this measure would also limit price increases for public transport.

The proposal was unpopular among some parties, including the CDA and 50Plus, but they decided to vote in favor in the end.

A motion by GroenLinks-PvdA and Partij voor de Dieren to increase the taxation on private jets was also supported in parliament. Starting in 2030, travelers on planes with fewer than 20 seats could face a surcharge of up to €2,100 per passenger, while European flights will carry a €420 fee.

According to MP Stultiens (GroenLinks-PvdA), the measure could generate €58 million a year for the treasury, as passengers either pay higher fees or reduce their flying.