Petrol prices push past €2 per liter squeezing drivers at the pump

The average suggested retail price for petrol was 2.001 euros per liter on Friday - the first time ever it's topped the 2 euro mark, according to figures from United Consumers. The recommended prices for diesel and LPG are also at their highest point ever at 1.659 euros for diesel and 1.026 euros for LPG.

The main reason is the high oil price, NU.nl reports. The demand for oil increased in the past period. More economies are reviving now that the coronavirus crisis seems to be coming to a slow end, and that comes with a lot more energy consumption. Oil producing companies are also not pumping as much oil as they could, making the resource relative scarce and prices high. The price of a barrel of North Sea oil (Brent) is current over 80 dollars - the highest point in three years.

Another factor is that the tax on fuel increases every year. The oil price in 2008 was much higher than now, but then the taxes were lower. Excise duties per liter of fuel is currently about 10 cents higher than a decade ago. VAT is also levied on the higher excise duty, and that VAT percentage also increased from 19 to 21 percent in the past decade.