Skip to main content
Home

Main navigation

  • Top stories
  • Health
  • Crime
  • Politics
  • Business
  • Tech
  • Culture
  • Sports
  • Weird
  • 1-1-2
Image
An offshore oil and gas rig
An offshore oil and gas rig - Credit: curraheeshutter / DepositPhotos - License: DepositPhotos
Politics
Business
Russia
Russian oil
boycott
European Commission
Russia-Ukraine crisis
war
sanctions
Paul van Selms
UnitedConsumers
Rico Luman
ING
Wednesday, May 4, 2022 - 17:10
Share this:
  • facebook
  • twitter
  • linkedin
  • whatsapp
  • reddit

Consequences of Russian oil boycott could be minor for NL residents: experts

Experts think that Netherlands consumers' burden from the European plan to stop using Russian oil may not be that bad. Market expert Paul van Selms of consumer collective UnitedConsumers and ING economist Rico Luman think that the oil price is already higher because the world expected a boycott of oil from Russia. When the boycott finally arrives, the price effect may not be that bad.

Both experts added that the development of, for example, the price of petrol depends on many things. For example, the dollar's exchange rate plays a role, as does whether the oil cartel OPEC decides to pump more oil and increase supply. "But if, as with this Brussels plan, the supply becomes more complicated, it will never have a price-lowering effect," said Van Selms. "It's never fun when a certain amount of oil disappears."

ING economist Luman thinks that the European Commission's proposal, which wants to stop imports of crude oil from Russia within six months and of gasoline and other oil products by the end of the year, could ensure that the current high prices will last longer. "The pressure remains on the boiler. We have to take higher oil prices into account for longer," said the transport and mobility economist at the bank.

He expects the consequences for diesel prices to be greater than for petrol because Europe is more dependent on Russia for diesel. Transport companies mainly use this fuel. According to Luman, carriers often have a clause in contracts that passes higher fuel costs on to clients. "And then that ends up with the consumer, for example, via Albert Heijn."

According to Luman, the influence of higher transport costs is most noticeable in low-value products like cheap clothing, toys, and household items, because transport makes up a relatively large part of the costs. 

The economist isn't worried that a Russian boycott would result in an oil shortage. "There is still time to make a switch." He mainly looks at the Middle East for this.

Oil prices rose on Wednesday after the European Commission's proposal was announced. A barrel of American oil now costs 3.3 percent more. Brent oil became 3.1 percent more expensive. 

Follow us:

Latest stories

  • World first: Delft researchers succeed in teleporting data
  • Dutchman stabbed to death after bar fight in Spain
  • Ten percent of NL residents avoid the dentist
  • More families need help from food, clothing banks
  • Schiphol CEO criticized for being absent during chaotic times at the airport
  • Students worried about effect of interest rate hikes on study loans

Top stories

  • More female managers, but wage gap remains
  • Only male aldlermen in 46 Dutch municipalities
  • More reformed schools denouncing homosexuality despite uproar
  • Defense refused to help manage crowds at Schiphol, CEO says
  • KLM stops ticket sales on Amsterdam flights; Schiphol unveils crowd management plan
  • Schiphol expects crowds due to Ascension Day long weekend

© 2012-2022, NL Times, All rights reserved.

Footer menu

  • Privacy
  • Contact
  • Partner content