Petrol prices about 6% more expensive than at the end of last year

The petrol price at filling stations in the Netherlands is heading for an annual price increase of about 6 percent this year. This means that the increase is not terribly bad, because in September a liter of Euro95 fuel was briefly about 19 percent more expensive than on New Year's Eve 2022. A global drop in oil prices has made refueling considerably cheaper in the Netherlands in recent months. Diesel is even slightly cheaper now than a year ago.

With a few days to go before New Year's Eve, the national recommended retail price was set at 2.054 euros per liter on Tuesday, according to figures from consumer collective UnitedConsumers. At the end of last year, motorists still spent 1,939 euros per liter.

These recommended prices are usually only charged along the highway. At some cheaper pumps elsewhere in the country, motorists can now refuel for less than 1.80 euros per liter.

In the first months of the year, prices at the pump remained fairly stable. However, on July 1, the price rose by about 12 cents per liter when the excise duty reduction implemented last year was partially reversed.

Over the summer, oil prices started to rise sharply due to production restrictions by Saudi Arabia and Russia amid speculation that global oil demand would increase significantly. At one point, the recommended retail price for petrol reached a peak of 2.302 euros per liter in September.

In fact, a further increase in excise duties was planned for January 1. An inflation correction was then going to be added on top of this, which would make a liter of petrol 21 cents more expensive in total. Many political voices raised objections to this in September to block the measure. A parliamentary majority ensured that the tax increase did not go forward.

Afterwards, oil prices also started to fall sharply again because a reduction in oil demand was expected due to weaker economic growth, and recessions in various countries. This worked out favorably for motorists in terms of the recommended prices from the major oil companies.

The price of diesel showed broadly similar trends, with the only difference being that the price gradually fell in the first months of the year. A liter of diesel is now a bit more than two percent cheaper at 1.870 euros per liter, compared to 1.913 euros at the end of last year.

The development of oil prices in the near future will largely determine what happens to the price and the pump in the coming months, something which is difficult to predict. In many countries, concerns about a recession have not yet disappeared. At the same time, the major oil countries are further reducing their production, which could easily push prices up again.