The Dutch government said on Friday it will reduce taxes on petrol and diesel fuels by 21% in response to record high prices.
In addition, people with low incomes will receive subsidies to compensate for high electricity and gas prices.
The total package of measures amounts to about €2.8 billion ($3 billion).
A litre of petrol currently costs an average of €2.50 in the Netherlands. Almost half of this is levies and value added tax (VAT).
As of April 1, the levies will be reduced by about 17 cents per litre of petrol and 11 cents per litre of diesel, according to the government.
Inflation may increase by up to 5.2% this year, the government estimates, while purchasing power will decrease by 2.7% on average.
Subsidies, VAT reduction
Citizens with low income are now to receive €800 each for their electricity and gas bills. Initially, €200 had been promised.
VAT on gas and electricity will also be reduced from 21% to 9%, with the government looking to help people with medium incomes and small businesses.
Two weeks after the start of the war in Ukraine, Russia says it is continuing to supply large quantities of gas for transit through Ukraine to Europe.
This Friday, the contractually agreed quantity of 109.5 million cubic metres will again be provided, Gazprom spokesman Sergei Kupriyanov said according to the Interfax agency.
On Thursday, President Vladimir Putin stressed that oil and gas deliveries abroad would not be stopped despite unprecedented sanctions imposed by the West.