Significantly lower costs at the gas pump due to falling oil prices

- Advertisement -spot_imgspot_img
Significantly lower costs at the gas pump due to falling oil prices

The prices motorists pay for a liter of petrol or diesel were a lot lower last week. This is a decrease of 7 cents per litre. The reason for this is the falling oil prices of recent times, but it also has to do with the more expensive euro.

A Tamoil petrol station in Zaandam. (ANP / Harold Versteeg)

Investors have been preoccupied for more than a week with the turmoil in the stock markets due to problems with banks in the United States and Europe. This causes oil prices to fall. There is a fear that the problems will spill over to other banks and cause less economic growth. Then less oil is needed and prices can fall.

On Wall Street, the US oil price fell 12 percent this week, the biggest drop in almost a year. The price of Brent oil, the standard for Europe, the Middle East and Africa, also plummeted.

At the pump

And that was on display at the gas station. The suggested retail price for a liter of petrol fell by 6.8 cents to 1,924 euros in six days, according to consumer collective UnitedConsumers, which monitors fuel prices daily. Diesel has been decreasing for some time and has become 8.6 cents per liter cheaper since last Wednesday to 1,726 euros. These prices are usually only paid on the highway or in city centers.

‘Fuel prices usually lag somewhat behind oil prices,’ explains Paul van Selms of UnitedConsumers. This could mean that prices at the pump could fall even further. But at the same time, Van Selms warns that prices are now ‘at a real level’. “They seem a little low to me rather than high.”

Furthermore, we can count on higher fuel prices this summer anyway, warns Van Selms. Then the discount on excise duties, which has been in effect since last year, will expire.


- Advertisement -spot_imgspot_img
Latest news
- Advertisement -spot_img
Related news
- Advertisement -spot_img