AMSTERDAM, April 20 (Reuters) - 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
EU has reserves, production for five-months supply of jet fuel, Dutch government says
EU Jet Fuel Supply and Strategic Reserves Amid Crisis
Current Supply Estimates and Production Levels
AMSTERDAM, April 20 (Reuters) - The Dutch government on Monday estimated that the European Union could supply enough kerosene to the EU's economy to last about five months, drawing on domestic production and strategic reserves.
European airlines have warned of potential jet fuel shortages within weeks as a result of the Iran war. The Dutch government said in a letter to parliament that domestic supply of kerosene, or jet fuel, is 78% of normal levels, as most imports have ceased. The Netherlands has several of Europe's largest refineries in the Port of Rotterdam.
Measures to Address Supply Disruptions
Outlining measures to shield households and businesses from rising energy costs, the government said European production of diesel and kerosene, combined with the use of strategic reserves of crude oil and oil products, could cover “several months” of demand if supply disruptions remain at current levels.
It said that this equates to about five months for kerosene, and more than a year for diesel and petrol, assuming reserves are fully used and not diverted elsewhere.
Breakdown of Reserves and Commercial Supplies
A spokesperson for the Dutch Energy Ministry, which co-authored the letter, said the kerosene estimate includes both reserves and commercial supplies. The International Energy Agency has said supplies in Europe are enough to last through June.
Government Response and Relief Measures
The government said there were no immediate fuel shortages, despite a sharp rise in prices following the closure of the Strait of Hormuz, which has disrupted roughly one-fifth of global oil and gas flows.
The Dutch government said it would activate the first phase of an oil crisis plan it drafted in 2022, involving enhanced monitoring of energy markets and preparations for further measures.
Details of the Relief Package
The relief package includes roughly 1 billion euros ($1.2 billion) in measures, including tax relief for commuters and transport sectors, cheap loans for investments in home energy efficiency, and targeted support for low-income households.
($1 = 0.8504 euros)
(Reporting by Toby Sterling, Bart MeijerEditing by Keith Weir and Jane Merriman)
