Dutch drivers flood Germany for cheaper gas after Berlin slashes fuel taxes

Dutch motorists are crossing into Germany in growing numbers to fill up after the German government slashed fuel excise taxes, dropping prices by about 10 cents per liter starting in the early morning of May 1.

The reduction widened the gap with record Dutch pump prices to around 30 cents per liter, according to Border Tanker. A full tank now saves more than 10 euros compared with the Netherlands. The two-month cut is expected to deliver an average reduction of about 17 cents per liter and a total benefit of 1.6 billion euros to drivers and businesses. It aims to ease the burden from rising fuel costs due to the blockade of the Strait of Hormuz.

Germany’s ADAC expects further price drops in the coming days as stations deplete older, higher-taxed stocks. Operators can raise prices once a day around noon, after which they typically fall, making mornings the cheapest time to refuel.

A German driver captured the cautious mood: “It is naturally better than before, but good and cheap it still is not by a long shot. I still find it too expensive.”

Motorists remain skeptical whether stations will fully pass on the savings. Retailers promised to do so but face a major logistical effort to keep tanks full during the May 1 Labor Day holiday weekend, when many Germans took to the roads and others waited until the lower rates kicked in.

Dutch researcher Jeannine van Reeken-van Wee, who studied tank tourism for ABN Amro, said larger price differences attract drivers from farther away.

“People are sensitive to it when price differences increase,” she said. “Motorists also made a quicker trip to Belgium when the differences became larger.” Her calculations showed about 15 percent of gasoline consumption in the southern Dutch border region shifted to Belgium during previous spikes.

Near the border, Dutch station owner Gerrit Heinen already notices fewer customers. “I expect two somewhat quieter months,” Heinen said. Business was lighter last Thursday as drivers held off for the German cut. “It is what it is. We have experienced it more often.”

German economists are not enthusiastic about the broad discount. Correspondent Charlotte Waaijers reported heavy pressure on the government to act, but experts warn it reduces the need to save energy and hurts climate goals. They pointed to a similar costly measure four years ago after Russia’s invasion of Ukraine that mainly benefited higher-income drivers. Targeted aid for lower-income households would be cheaper and more effective, they argue.