We won’t go so far as to say that this wait-and-see approach is linked to this, but the government has every interest in waiting: each increase in pump prices generates additional financial revenue for the State, in the form of VAT.
on Thursday and Friday, the prices of diesel and gasoline increased by 14.4 cents and 4 cents per liter respectively. The State therefore recovers, via the 21% VAT, an additional 2.5 cents per liter of diesel since Thursday, and 0.695 cents per liter of gasoline since Friday.
Augmentation du prix des carburants : cinq astuces qui peuvent vous permettre de limiter la casse
It may not seem like much, but when you know that 27.2 million liters of fuel (16.75 million liters of diesel, and 10.2 million liters of gasoline) are consumed each day in Belgium, according to figures from the FPS Economy for the month of January, the amount quickly becomes astronomical.
With the increase in the prices of both fuels, this corresponds to €418,750 in additional revenue per day for diesel since Thursday and €71,000 for gasoline this Friday. Assuming everything else remains equal and prices do not change further, this would equate to nearly €15 million in additional revenue per month. This provides insight into why the Federal government, whose ministers do not pay for fuel, is in no rush to intervene.
Interdit en Belgique, ce carburant à 0,80€ le litre cartonne en France
Brussels – Belgian Finance Minister Jan Jambon has cautioned against a hasty response to rising energy prices, stating “football panic is not a good policy,” as fuel costs continue to climb amid heightened geopolitical tensions. The comments arrive as the government faces increasing pressure to intervene following price increases at the pump.
The surge in energy prices follows a U.S.-Israeli attack on Iran, which has significantly impacted oil prices and, subsequently, fuel costs in Belgium. On Thursday and Friday, diesel prices rose by 14.4 cents per liter, while gasoline increased by 4 cents per liter, according to recent reports. This price increase is translating into substantial additional tax revenue for the Belgian state.
Specifically, the government is collecting an extra 2.5 cents per liter of diesel through the 21% VAT since Thursday, and an additional 0.695 cents per liter of gasoline since Friday. Considering daily fuel consumption in Belgium – 16.75 million liters of diesel and 10.2 million liters of gasoline as of January, according to the FPS Economy – these increases are generating approximately €418,750 in additional daily revenue from diesel and €71,000 from gasoline.
This equates to a potential increase of nearly €15 million in monthly revenue for the federal government, raising questions about the urgency of intervention. Minister Jambon has indicated that no immediate measures are planned, but has requested an analysis of potential improvements to existing mechanisms, such as a system to automatically reduce excise duties on gas when prices exceed a certain threshold.
Energy Minister Mathieu Bihet stated the government is examining “different possible scenarios” and “excluding no possibility at this time,” while emphasizing the need for “cool heads and great vigilance.” He also referenced the “factor K” mechanism, which allows for price corrections in response to sudden increases. The situation underscores the delicate balance between providing relief to consumers and maintaining fiscal stability in a volatile energy market.
