As of July 1, excise duties on diesel will be raised to their original level of 52 cents. Fearing large price increases, the government lowered fuel excise duties after the invasion of Ukraine. Now that prices appear to be better than expected, politicians in The Hague believe it is time to return excise duties to their old level. Wholesale director at Van Staveren, Jan Sipke Hulzinga (left in the photo) explains the consequences of the increase.
What is the precise impact of the increase?
"For our customers, the most important impact is that excise duties on diesel will increase by 1 cents as of July 9,9. There is currently an excise duty discount. There is a ruckus in the market and our customers naturally have questions about this. That's the problem. especially in the fact that excise duties are being increased so much at once. The media has also been heavily on the subject in recent weeks. It would have been worth considering, for example, to use increments of 3 cents to increase, then the magnifying glass is not there right up."
So you can deliver at the old prices until June 30?
"The current excise duty discount applies until June 30. As of July 1, we will again pay the rate set by the ministry plus the 9,9 cents, which gives you around 52 cents. We must pay that amount when the customer's tank is being filled. So it is not the case that we can, for example, sell our current reserves even cheaper after that date. However, they do not have to pay higher excise duties on the stocks that our customers build up before then."
"The cost savings are therefore limited. For example, on a 3.000 liter tank you are talking about a saving of €300. Every little bit helps, of course, but on the entire sales of an agricultural company that is a modest saving. That effect is of course Even greater when you have the tank refilled. For example, if you only have an extra 1.000 liters refilled, the savings are of course not significant."
Jan Sipke Hulzinga
Is it still possible to have your tank filled quickly?
"Then I come back to those work supplies. We have more than enough capacity to make an extra visit. As long as not all customers order on the last day, we can continue to deliver all orders."
Much has already been written about higher excise taxes. Has there been a run on diesel in recent months?
"Our customers basically have a working stock. Now that there is almost constant irrigation, you should not be surprised if many arable farmers use up their diesel reserves in a week. Our customers are usually unable to build up a strategic stock at all. A run to profit of the current excise tax reduction is therefore impossible."
So you can't go on holiday en masse next week?
"Certainly not, if you look at the current state of arable farming. As a supplier to the agricultural sector, we are very busy at the moment. At the moment there is a lot of irrigation, mowing, harvesting bulbs, and so on. Some customers are currently through their work inventory in two days."