Dutch government offers tax breaks for rising fuel costs

The Dutch government on Monday announced temporary tax breaks to compensate for rising fuel prices and said it would prepare further measures in case the energy crisis worsens.

The government earmarked around 1 billion euros ($1.2 billion) for measures that include temporary tax relief for commuters, truck drivers and fishermen, but not the lower fuel taxes that many of them had asked for.

The measures also include support for home-owners to reduce their energy consumption and targeted support to help people on lower incomes with their energy bills.

The government said there were no immediate fuel shortages, as European oil, diesel and jet fuel supplies were seen to be large enough to meet demand for up to a year.

It did confirm earlier reports that it would activate the first phase of an energy crisis plan, in which energy markets are closely monitored and further measures are prepared.

It is the first time the government has activated the four-stage plan, which was designed during the energy crisis triggered by Russia's full-scale invasion of Ukraine in 2022.

($1 = 0.8504 euros)

-Reporting by Bart Meijer;Editing by Keith Weir/Reuters