Petrol prices set to rise next year as MPs divert funds to buses

Petrol is set to become more expensive from January 1, after MPs backed a proposal to raise excise duties by a narrow majority. The tax on a litre of petrol will increase by 5.6 cents, with diesel up 3.6 cents and LPG by 1.3 cents, if the changes go ahead.

MPs supported a ChristenUnie plan to redirect part of the money originally intended to keep pump prices down towards public transport. Earlier this year, the cabinet agreed to extend temporary tax cuts for another year at a cost of €1.7 billion.

The lower house, however, now wants to shift €448 million of that amount to support the public transport network.

ChristenUnie MP Pieter Grinwis said reversing planned public spending cuts over the next two years is essential, warning that many bus routes risk disappearing, particularly in rural areas where people rely on a single service.

Many parties oppose raising fuel prices but the CDA and 50Plus eventually threw their support behind the plan, allowing it to pass.

Grinwis said the higher tax is “not pleasant” for motorists but also “not a disaster”, adding that public transport “has been neglected for years”. He said the move would help preserve key connections and limit further fare increases.

Whether motorists will feel the full impact of the higher tax depends in part on oil prices, which may rise or fall in the coming months. Euro 95 petrol in the Netherlands currently costs around €2 a litre, but there are wide variations.

In a separate vote, MPs also approved a proposal from GroenLinks-PvdA and the pro-animal PvdD to impose higher taxes on private jet travel. From 2030, passengers on aircraft with fewer than 20 seats will pay an additional charge of up to €2,100 per ticket, or €420 for flights within Europe.

The parties behind the plan say private jets produce disproportionately high emissions, often on short routes. GroenLinks-PvdA MP Kiki Stultiens said the measure could generate €58 million a year. “Either these people will pay more, or they will use private jets less,” she said.