Facing energy crisis, Netherlands allocates Rp20 trillion in aid

The Dutch government has announced an aid package worth almost 1 billion euros (approximately Rp20.2 trillion) to cushion the impact of rising energy costs for households and businesses due to the conflict in the Middle East.

As part of the policy, the tax-free travel allowance for employees will increase by 0.02 euros to 0.25 euros (Rp5,050) per kilometre and will apply retroactively throughout the year, according to a NOS report on Monday (20/4).

This adjustment is estimated to equate to savings of around 0.30 euros per litre of fuel.

In addition, motor vehicle tax for grey-plated vans, commonly used by small businesses, will be halved starting from 1 July until the end of the year.

Truck taxes will also be reduced to zero during the same period.

To support vulnerable households, the Dutch government has allocated 195 million euros to the Energy Emergency Fund.

An additional 180 million euros will be allocated to the national heating fund, which provides loans for home insulation and energy efficiency improvements.

The Dutch government states that more than 600 million euros from the package is direct spending, while more than 300 million euros comes from tax reductions.

To finance the policy, alcohol excise duties will be increased in line with inflation next year.

Despite pressure from parliament, the Dutch government has chosen not to intervene in fuel prices at petrol stations, deeming it expensive and having limited impact.

Officials estimate that a 0.10 euro (Rp2,020) per litre reduction in fuel prices would burden the state with around 1 billion euros.

The Dutch parliament is scheduled to discuss the proposal on Wednesday (22/4), and the majority of members are expected to support it.

Shipments through the Strait of Hormuz have been disrupted since the US-Israel joint attack on Iran on 28 February.