‘No lower petrol price despite billion-dollar cabinet package’
To cushion the economic impact of the war in the Middle East, the government is coming up with a support package of almost EUR 1 billion. However, lower prices at the pump do not seem to be in the cards for the time being, reports NOS.
The cabinet’s plans state that employees will receive a higher allowance for their travel expenses, from 23 cents to 25 cents. There will also be a reduction in vehicle tax for grey license plates (vans). There will also be an additional EUR 50 million of support for the poorest households and extra money for insulating houses. Subsidies for green investments at companies will also be made available earlier.
These measures are not yet fixed. On Friday, the cabinet will discuss the plans in the Council of Ministers. After that, the cabinet wants to talk to opposition parties to see whether there is sufficient support or whether adjustments are needed.
No excise duty reduction
For now, the plans do not include money to reduce excise duty on fuel. Although Germany announced on Monday 13 April that excise duty on fuel would be reduced by 17 cents per litre, the Dutch cabinet considers this measure too expensive and not effective enough. To reduce petrol prices by 10 cents per litre, the government would have to pay about one billion euros.
As nobody knows how long the situation will last, the cabinet is mainly looking at the long term, writes NOS. There are fears of even heavier economic blows, so the cabinet does not want to spend too much money now. Moreover, the cabinet thinks lower excise duties will encourage fuel use, which they say is not the intention.
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