More Dutch crossing the border to fuel up in Belgium: ABN Amro

Dutch motorists are increasingly crossing the border to fill up at Belgian gas stations as pump prices in the Netherlands stay significantly higher than in Belgium, ABN AMRO bank reported. The trend has grown stronger since oil prices climbed after the outbreak of the U.S.-Israeli war with Iran and the closure of the Strait of Hormuz, and the bank expects a similar increase in fuel tourism toward Germany after that country lowered excise duties on diesel and gasoline about a week ago.

ABN AMRO examined household gasoline purchases in the Dutch border regions. The bank found the shift to Belgium began after an excise duty increase took effect in January. Since the recent oil price surge, cross-border purchases have risen by another 10 percentage points.

Tanking in Belgium instead of the Netherlands now saves drivers of an average car between 25 and 30 euros per full tank, the bank calculated.

The effect is relatively larger for households living farther from the border. Those within 10 kilometers have already bought more than half their gasoline in Belgium before this year, and that share has increased.

For households living about 30 kilometers away, the percentage of fuel bought in Belgium has doubled. As a result, Dutch gas stations located farther from the border will feel a greater impact from tank tourism than before, the bank said.

Seventy percent of households in the border regions have made no change in response to the higher fuel prices. Some already fuel regularly in Belgium, but the larger share consists of those living more than 10 kilometers from the border who continue buying in the Netherlands. Ten percent of households account for nearly 50 percent of the overall shift to Belgian stations, ABN AMRO determined.

The bank noted that tank tourism is often cited as a reason to cut excise duties in the Netherlands. However, the cabinet has chosen not to intervene at the pump.

A reduction in gasoline excise duty was not included in the support package presented Monday. ABN AMRO said it understands the decision because support measures should be temporary and targeted. An excise cut would also reportedly provide help to households that do not need it.