Cabinet Spends Nearly €1 Billion on Energy Measures but Refuses to Cut Fuel Prices

The Dutch cabinet presented a support package of nearly €1 billion on Monday aimed at softening the impact of the war in the Middle East and the disruptions it has caused to global energy supplies. The package was sent to parliament in a letter from the ministers of Economic Affairs, Finance and Climate. The cabinet has also activated phase 1 of the National Oil Crisis Plan, involving intensified monitoring and communication with businesses.

Rentals in the Netherlands

Signaal tracks the Dutch rental market and notifies you the moment something matches your search. Be first to apply.

The package in numbers

The package totals €627 million in spending measures and €340 million in targeted tax relief in 2026. The cabinet has outlined measures along three lines: purchasing power and business resilience, security of supply, and long-term energy resilience.

The cabinet emphasises that energy prices are expected to remain elevated for the foreseeable future, even if the conflict in the Middle East were to end in the short term.

What the measures include

The tax-free commuter allowance for employees is being raised by 2 cents to €0.25 per kilometre, with retroactive effect from 1 January 2026. The cabinet calculates this is equivalent to a saving of around €0.30 per litre of fuel for necessary commuter journeys.

From 1 July 2026, the road tax for delivery vans with commercial plates is being halved for six months, at a cost of €150 million. Road tax for heavy trucks is being set to zero for the second half of the year. The new heavy goods vehicle levy that had been due to take effect on 1 July is being paused, with the government entering into discussions with the sector about alternatives.

€195 million is being added to the Energy Emergency Fund to allow more vulnerable households with high energy bills to apply for support. A further €180 million is being added to the existing warm homes fund, which provides loans for home insulation. The fisheries sector receives €25 million to reduce its dependence on fossil fuels, and farmers receive €25 million to cut energy and artificial fertiliser use.

Lower-income households will also be able to apply for a subsidy to buy an electric car, on the condition that they scrap their old fossil-fuel vehicle.

Why there is no fuel duty cut

Despite considerable political pressure, no measures have been included to reduce the price at the pump directly. Germany has introduced a fuel duty cut, but the Dutch cabinet concluded that such a measure would cost a great deal of money while providing relatively little relief to those who need it most. The cabinet considers targeted support for lower-income households more effective than a broad reduction in fuel duty.

How the package is being paid for

To finance the measures, excise duties on alcohol will rise next year in line with inflation, amounting to a few cents per drink. The starter's deduction for beginning entrepreneurs is being abolished, and a separate tax break for small-scale investments is being scaled back.

The oil crisis plan

The cabinet has scaled up to phase 1 of the National Oil Crisis Plan (Landelijk Crisisplan Olie). This involves intensified monitoring, active communication with businesses and the public, and preparation of further steps if the situation deteriorates. There are currently no acute fuel shortages in the Netherlands, but supply disruptions for kerosine and to a lesser extent diesel are already causing price rises.

The Netherlands is preparing to participate in the first release of strategic oil reserves later this month, with further releases planned in May and early June.