GroenLinks-PvdA calls for maximum petrol and diesel prices

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The biggest Dutch opposition party GroenLinks-PvdA has called on the government to introduce a maximum price for petrol and diesel, similar to the system used in Belgium.

Party leader Jesse Klaver said the proposal is intended to soften the impact of higher energy prices on motorists. Fuel prices in the Netherlands have risen faster than in Belgium, he said, arguing that Dutch drivers should not be forced to pay the price of the conflict in the Middle East.

Belgium has used maximum fuel prices since the oil crisis of the 1970s. While pump prices in the Netherlands are based on recommendations by the major oil companies, prices in Belgium are set in consultation with the government.

The difference – currently around 70 cents a litre – has made it financially attractive for Dutch motorists living near the border to cross into Belgium to refuel.

Other European countries, including Slovenia and Luxembourg, also have maximum fuel prices while Greece and Hungary introduced temporary price caps this month in response to the conflict with Iran.

The Dutch central bank has described the likely impact of mounting fuel prices as “code amber” or “dark amber” but is opposed to generic measures to keep energy more affordable at the moment.

“Of course people are talking about compensation for the rise in energy prices and I completely understand it,” central bank president Olaf Sleijpen said during the presentation of the bank’s annual report on Tuesday.

“But at the same time, I think it sensible to wait what the impact will be on households before deciding to go for compensation.”

“Cutting fuel taxes by 10 cents is not going to make people happy,” he said. “And people like me don’t need it. If you do plan to cut bills, then make sure the help reaches those who really need it.”

Klaver also said he is not in favour of a tax cut because the bill will end up being paid by the general population. “We don’t want tax payers to have to pay for damping down fuel prices,” he said. “We have to ensure that oil companies’ profit margins are reduced a bit.”