Germany to end fuel tax discount, set to narrow price gap and curb Dutch fuel tourism
Germany will end its temporary fuel tax discount on July 1, a move expected to shrink the price gap with the Netherlands and reduce cross-border “fuel tourism” by Dutch drivers.
In recent weeks, the discount has helped make gasoline and diesel up to 30 cents per liter cheaper in Germany than in the Netherlands, according to AD (Algemeen Dagblad, General Daily Newspaper). That advantage has drawn large numbers of cars with Dutch plates to German stations near the border, creating long queues, traffic jams, and frustration among local residents.
ANWB (Algemene Nederlandse Wielrijdersbond, Royal Dutch Touring Club) reported average fuel prices in the Netherlands on Saturday at €2.218 per liter for Euro 95, €2.521 for Super Plus 98, €2.095 for diesel, and €1.034 per liter for LPG (liquefied petroleum gas). ANWB noted that prices can vary widely between gas stations.
Germany introduced the fuel tax discount on May 1 for a two‑month period lasting through June 30. The measure lowered prices by about 17 cents per liter and was intended to ease pressure from rising energy costs after global oil prices jumped following a conflict involving the United States and Israel with Iran in February.
The temporary tax cut is estimated to have cost the German treasury €1.6 billion. Officials cited the budget burden in confirming the program will not be extended beyond June 30 to avoid further strain on public finances.
Ahead of the discount’s end, German politicians warned oil companies not to raise prices sharply once the measure expires. Coalition leaders said they are prepared to intervene if there is a sudden price surge, though they have not announced specific steps.