High fuel prices

With pump prices fluctuating wildly and rising ever higher, the call for lower excise duties is growing louder. EV Belgium warns that this is the wrong reflex.

“Those hardest hit by high fuel prices today are precisely the ones who stand to gain the most from switching to electric driving,” says Philippe Vangeel, Director of EV Belgium. “A structural subsidy on fossil fuels solves nothing and keeps people dependent on an international oil market over which Europe has little control. Providing access to a technology that delivers savings of at least 50 euros a month to families – that is the social solution.” 

Thanks to EV Belgium’s calculation tool, every resident can now easily
estimate and calculate their savings on energy costs.

The federal coalition agreement recognises the need to continue the greening of the vehicle fleet and to accelerate electrification beyond the company car market. EV Belgium is calling on the government to translate that commitment into a concrete social leasing scheme, modelled on examples from abroad, whereby low-income families who rely on a car for work can gain access to an electric vehicle at a significantly reduced leasing rate. EV Belgium believes these countries are asking the right question: how do we ensure that the lower running costs of electric driving are also accessible to those who cannot fully afford the upfront investment themselves?

“That does not mean we have to copy foreign systems one-to-one — social leasing also has its limitations, such as financing and the need for good information and price transparency at public chargers for those who cannot charge at home. But the direction must also become clear in Belgium,” emphasises Vangeel.

EV Belgium conducted an in-depth study into
the impact of energy prices on the most vulnerable households
and compiled its findings in a policy paper.

The private EV market: the next step
Research by TNO and Utrecht University, published in ESB, shows that low-income households spend on average around twice as much of their income on fuel as high-income households — for those who drive many kilometres for work, this can rise to almost three times as much. The same research also shows that a general reduction in excise duty is particularly poorly targeted: of the approximately 1.7 billion euros that the Netherlands spends annually on lower fuel excise duties, barely 7 per cent reaches the lowest income group.

After years of tax policy that has primarily driven the transition to electric vehicles in the company car sector, the next step is inevitable for EV Belgium: bringing the private market on board. The electrification of our company car fleet was a necessary first phase. But those who do not have access to a company car or are on a limited income must not be left behind, according to the federation. The sector federation emphasises that a social lease scheme is the logical next budgetary step to make electric driving accessible to lower-income families as well.  EV Belgium stresses that a Belgian scheme must not be limited to new vehicles. The rapid electrification of the company car market means that the supply of second-hand electric cars will increase significantly in the coming years.

“An affordable second-hand electric car that saves a family 50 euros in energy costs each month can be far more socially relevant than a one-off purchase subsidy for a new car,” says Vangeel. “Subsidising cheap petrol sounds socially responsible, but it is an extremely expensive and poorly targeted measure,” says Vangeel.

A social lease scheme, on the other hand, provides precisely those families hardest hit by fuel prices with structural and targeted access to lower running costs.

“And that is the best social protection against expensive petrol: ensuring that fewer and fewer people still need that litre,” concludes Vangeel.

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EV Belgium is calling on the federal government to introduce a social lease programme from 2027 by:

• Putting into practice the commitment from the coalition agreement regarding the greening of the vehicle fleet;
• Including both new and second-hand electric cars in the scheme, to take full advantage of the growing supply from the company car market;
• Providing supporting measures such as accessible financing and transparent information on public charging so that families without home charger can also get on board.

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