car news

100 percent BPM increase: 20 price examples in a row

April 20, 2023

BPM Jetten: fuel prices sharply more expensive in 2024

Driving a car with a gasoline or diesel engine is expected to become much more expensive in 2024. Because, according to Minister Jetten for Climate and Energy, the excise tax on gasoline and diesel must increase substantially in order to make electric driving more attractive to the general public. Not only is Jetten considering hefty increases in fuel prices, but also doubling the BPM penalty. The reactions on social media have not been kind. ‘BPM Jetten’ has at once become a popular search term on Google, in the negative sense of the word.

100% BPM increase

That 100% BPM increase would have disastrous consequences for the Dutch car market. The Netherlands is already famous for sky-high car prices. A BPM doubling on cars with a gasoline or diesel engine will make new cars completely unaffordable. Then what happens? Simple: people start importing cars outside Dutch borders. The result: the Dutch economy takes a solid hit.

Rob Jetten
Rob Jetten, Minister of Climate and Energy.

Image: ©RVD – Valerie Kuypers and Martijn Beekman

Private car buyer sidelined

One stroke of luck: some parties in the cabinet think Jetten’s plans go way too far and are demanding that they be toned down. Jetten does argue that in exchange for the BPM increase, there will be a tax break for buyers of used electric cars. Moreover, business lease cars must be fully electric starting in 2025. But even then, Jetten immediately puts the private car buyer in the Netherlands out of business. Not everyone can afford an electric car yet. For a lot of people, a normal car in the A or B segment is the maximum achievable. Doubling the BPM amount also makes these normal models even more unaffordable.

BPM: problematic for years

Starting in 2030, the government wants to ban new sales of fuel cars already (ahead of the European ban in 2035). But before then, the government is also trying to take certain measures to encourage electric driving. Increasing the BPM amount, however, goes way too far. BPM has been a major problem for the Dutch car market for years. After all, sales on new passenger cars have not been at the desired level for years, while used cars are hard to come by. This is counterproductive to the greening of the Dutch car fleet, because a new car is generally cleaner. If you make those new cars unaffordable, greening almost comes to a halt.

Twenty price examples of BPM doubling

To clarify the effects of BPM doubling on the prices of new Dutch passenger cars, we list 20 completely random and normal cars. The price increases are simply shocking. One example we’d like to highlight right now. The Mitsubishi Space Star – the cheapest new car in the Netherlands in 2023 – now has a starting price of 16,490 euros, including 3,239 euros in BPM. That BPM amount increases to 6,478 euros under Jetten’s plan. As a result, the starting price rises to 19,729 euros. Then you get a little car without a radio or air conditioning. No, that’s not a joke. Below is the complete list of 20 price examples if the BPM doubling becomes a reality:

1. Mitsubishi Space Star 1.2 Mivec

2. Kia Picanto 1.0 DPi

3. Peugeot 208 PureTech 75

4. Volkswagen T-Cross 1.0 TSI

5. Subaru XV 2.0i Mild-Hybrid

6. Toyota Aygo X 1.0 VVT-i MT

7. BMW X1 sDrive18iA

8. Mercedes-Benz A 180 Hatchback mild-hybrid

9. Lexus NX 350h 2WD

10. MINI 3-door

11. SEAT Ibiza 1.0 MPI

12. Dacia Jogger Hybrid 140

13. Nissan Qashqai E-Power

14. Renault Captur TCe 90

15. Honda Jazz 1.5 e:HEV Hybrid

16. Suzuki S-Cross 1.4 Boosterjet Smart Hybrid

17. Volvo XC40 B3 Mild-Hybrid

18. Dacia Sandero TCe 100 ECO-G (5-speed).

19. Mazda CX-30 e-Skyactiv G 122 M Hybrid

20. Opel Mokka 1.2 Turbo

RAI Association: “BPM increase makes clean, fuel-efficient cars unaffordable”