Germany to end fuel tax discount, set to narrow price gap and curb Dutch fuel tourism
Border-area congestion at German gas stations in recent weeks and the imminent end of Germany’s fuel tax discount are converging to eliminate a price advantage that has drawn large numbers of Dutch motorists across the border for so-called "fuel tourism," AD reports.
German officials confirmed that the country will end its temporary fuel tax reduction on July 1, a measure that currently makes gasoline and diesel up to 30 cents per liter cheaper than in the Netherlands. The policy has fueled long queues at filling stations near the border, where vehicles with Dutch license plates have been arriving in large numbers, including at night, sometimes causing traffic backups and irritation among local residents.
According to the ANWB, the Dutch motorists’ association, on Saturday, average fuel prices in the Netherlands are 2.218 euros per liter for Euro 95, 2.521 euros for Super Plus 98, 2.095 euros for diesel, and 1.034 euros per liter for liquefied petroleum gas (LPG). The ANWB said fuel prices vary significantly by gas station.
The fuel tax discount was introduced on May 1 for a two-month period through June 30. It reduced fuel prices by roughly 17 cents per liter and was designed to ease the financial pressure from sharply rising energy costs following a surge in global oil prices after the United States and Israel entered into conflict with Iran in February.
According to reported estimates, the temporary tax cut cost the German treasury 1.6 billion euros. Citing the fiscal burden, officials said the program will be discontinued to avoid further strain on public finances.
At the same time, German politicians issued warnings to oil companies ahead of the end of the policy, urging them not to implement steep price increases once the discount expires. Coalition leaders also said they are prepared to intervene against any potential price surge, although no specific measures have been detailed.
