Expectation of natural gas prices: Increase in natural gas tax
The tax on natural gas has been increasing for years, and there is a reason for this. The government aims to reduce the consumption of natural gas with the goal of being completely free of natural gas by 2050. By raising prices, more people will consider switching to alternatives. This initiative is driven by climate considerations, and many Dutch households, as well as businesses, are feeling this change in their wallets.
Starting January 2024, the tax on natural gas will increase by €0.10 per cubic meter, which translates to an annual increase of approximately €90 for an average household with typical energy consumption. This measure has been implemented as part of broader initiatives to reduce the use of fossil fuels and promote more sustainable energy sources.
Tax for large consumers (business/commercial).
In addition to the rising taxes for households in the Netherlands, there is currently a lively discussion about the benefits for large consumers of natural gas. The energy tax per cubic meter of natural gas decreases significantly as consumption increases. Please see the table below for details. This has caused dissatisfaction among many Dutch citizens. The Dutch government appears to want to adjust these benefits in the near future.
An increase in energy taxes can have both positive and negative effects. Large consumers of natural gas will more quickly look for alternatives. In these cases, propane can serve as a substitute for natural gas during times of transition. However, when the costs do not outweigh the benefits, companies may also decide to relocate. For businesses, this is usually not desirable. Nevertheless, it can be a lucrative decision for large consumers.
The table below shows the trend in energy tax on natural gas. This influences our expectations regarding the future of natural gas prices.
Alternative propane gas and its relationship to natural gas
Propane gas, like natural gas, is a hydrocarbon gas. Although they are often used in similar applications, there are some differences in their properties and composition.
The price of natural gas is to some extent linked to that of oil-derived products, although in recent years they have fluctuated somewhat independently of each other based on supply and demand, geopolitical events, and other market factors.
Switching to propane gas can be financially advantageous. Theprice of propane gasis often competitive with the price of natural gas. However, price is not the only factor to consider. In addition to price, the available space for placing a tank is an important point, and delivery reliability is also crucial. Propane gas is stored in a tank and therefore needs to be refilled from time to time.
OK GAS as your propane gas supplier
Aspropane gas supplierwe do, however, provide certainty. By theuse of telemetrywe ensure that your tank is refilled on time. We are also the only propane supplier with our own gas terminal. With OK GAS as your supplier, you will never run out of gas.
If you are considering switching to an energy source other than natural gas because you want to review your current energy costs, now may be the time to explore your options. We are here to provide you with advice and the option of apropane tankto you. We are happy to take care of everything for you! If you would like to know more, feel free to request a non-binding quote or contact us directly!