Belgium Fuel Prices Drop 10 Cents Per Litre as Government Approves Commuter Tax Credit
Belgian motorists received welcome relief at the pump on Friday as petrol and diesel prices fell by more than 10 cents per litre, the first significant drop after weeks of steep increases driven by geopolitical instability in the Middle East. The Federal Public Service Economy (SPF Economie) announced the new maximum prices on Thursday, with reductions taking effect from May 29, as reported by RTBF.
New Price Levels
The price of unleaded 95 RON E10 dropped to a maximum of €1.856 per litre, a decrease of 11.8 cents. Unleaded 98 RON E10 fell to €1.934 per litre, down 10.8 cents. Diesel prices also declined significantly, with diesel B7 falling to €2.038 per litre (-10.3 cents) and diesel B10 to €2.03 per litre (-10.1 cents). Heating oil and agricultural diesel also saw reductions, with heating oil dropping by approximately 3 cents per litre, according to L’Avenir.
For a typical 55-litre tank of 95 RON E10, the reduction translates to approximately €6.50 in savings compared to prices before the drop. The all-time record of €2.155 per litre for 95-octane petrol, set in July 2022 during the Russia-Ukraine energy crisis, is now significantly further away.
Context: Geopolitical Drivers
Belgium’s fuel price volatility throughout 2026 has been directly linked to the US-Israel military campaign against Iran that began on February 28, 2026. The conflict led to the effective closure of the Strait of Hormuz in March, through which approximately 20% of global oil transits, causing a major supply shock. Petrol prices approached €2 per litre in early May, and diesel hit a record €2.49 per litre in April, as RTL Info reported.
Government Response: Tax Credit Approved
Alongside the price drop, the Belgian Chamber of Representatives adopted a temporary tax credit for home-to-work travel expenses in a late-night session on Thursday. The measure, part of the Arizona coalition government’s €80 million energy aid package agreed in April, allows employers to increase the tax-free kilometer allowance for commuting employees. The federal government will compensate 20% of the increase, capped at 10 cents per kilometer, with a budget of €20 million per month over three months (May through July), as detailed by RTBF.
The majority parties, joined by the far-right Vlaams Belang, voted in favor, while opposition groups abstained. Critics, including Pierre-Yves Dermagne (PS), argued the government should have activated the “cliquet inversé” (reverse ratchet mechanism) to automatically adjust excise duties when prices rise, calling the package “a communication plan rather than an action plan.”
Analysis: Fragile Relief
While the price drop offers tangible relief for consumers, analysts caution that fuel prices remain highly sensitive to geopolitical developments. The 15-day US-Iran ceasefire announced in early April and the temporary reopening of the Strait of Hormuz have not fully stabilized markets. Any escalation in the conflict could quickly reverse the current downward trend.
The crisis has also exposed Belgium’s structural vulnerability as a fossil fuel importer, reigniting debates about energy transition, nuclear power, and renewable energy investments. Prime Minister Bart De Wever has received a mandate to advocate at the EU level for a windfall tax on energy company superprofits.
What to Watch
Several factors will determine whether this price drop marks a turning point or merely a temporary respite. The durability of the US-Iran ceasefire remains the single most important variable. Additionally, the temporary commuting tax credit is set to expire after July, raising questions about whether it will be extended. As winter approaches, heating oil costs will also come back into focus for Belgian households already grappling with elevated living expenses.
For now, motorists can fill up at notably lower prices than just a week ago — a rare piece of good news in a year marked by relentless upward pressure at the pump.