Dutch gas prices are third-highest in Europe as taxes drive costs skyward

Dutch households paid the third-highest price for natural gas in Europe last month, with taxes making up more than half the total cost, according to an analysis by energievergelijk.nl.

The average price reached 17.8 euro cents per kilowatt-hour, including taxes and network costs. Only Sweden and Switzerland had higher rates. Households in Belgium paid 9.3 cents per kWh, and those in Germany paid 11.9 cents per kWh. Prices were lowest in Eastern Europe, where governments have used price caps and subsidies to lower consumer costs.

More than 60 percent of the variable gas rate in the Netherlands consists of energy tax and value-added tax, according to energievergelijk.nl. The Household Energy Price Index analysis, which also factors in network costs and fixed delivery charges, shows taxes account for 51 percent of the total—the highest tax burden on gas anywhere in Europe. Slovakia ranked second at 32.8 percent and Sweden third at 31 percent.

Koen Kuijper, an energy expert at energievergelijk.nl, said the tax policy is meant to change behavior. “The energy tax is in fact a kind of excise tax to discourage the use of gas and to stimulate the transition to electricity,” he said. “Households that are completely off gas and have properly insulated their homes therefore pay much less tax on their energy bill. The problem is that the switch to a gas-saving or gas-free home is not feasible for many households.”

Taxes make up 35.3 percent of the total energy bill at average consumption levels, the analysis found. That share falls sharply for households that use less gas, such as those with good insulation and hybrid heat pumps. Homes that are fully off the gas grid typically face the lowest tax burden.

Kuijper pointed to several barriers that make it hard for many people to switch. These include high heat pump investment costs, insufficient insulation, and rental homes where landlords decide on upgrades. “The high tax on gas, therefore, feels unfair to many people, because they have few options,” he said. “It remains largely a political choice to keep the tax on gas so high.”

Energy bills are rising in 2025 despite a small tax cut. The government lowered the tax on gas by 0.6 euro cent per cubic meter and on electricity by 0.9 euro cent per kWh. Higher network management costs more than offset those reductions. For a typical household using 2,479 kilowatt-hours of electricity and 1,169 cubic meters of gas, the monthly bill is 1 to 5 euros higher than in 2024.

Electricity prices in the Netherlands are more moderate. Consumers pay 25.2 euro cents per kWh, just above the European average of 23.5 cents. Rates are much higher in Germany, at more than 40 cents per kWh, and in Belgium, at 37 cents. Prices vary widely across Europe because of differences in energy sources and government policies. Norway and Sweden benefit from abundant, cheap hydropower, while many Eastern European countries keep consumer prices artificially low with caps and subsidies.