Fuel prices drop slightly but remain high; Netherlands joins historic global oil release

The surge in fuel prices at petrol stations across the Netherlands, driven by the war in the Middle East, paused on Wednesday. A day earlier, the national average recommended retail price for diesel had exceeded 2.50 euros per liter for the first time. In coordination with international partners, the Dutch government is taking part in an unprecedented release of strategic oil reserves to ease prices. The International Energy Agency (IEA) has launched the largest global oil release in its history, with the Netherlands supplying more than 5.4 million barrels from its own reserves.

The oil is being rapidly released onto global markets to counter price hikes immediately. By drawing directly from local reserves, such as those in Rotterdam and Eemshaven, the supply avoids reliance on potentially blocked or unsafe routes like the Strait of Hormuz.

It could take roughly four weeks for the released oil to be refined into gasoline and other fuels, before any impact is seen at the pump.

The recommended price for a liter of Euro95 petrol has fallen slightly to 2.447 euros from 2.453 euros on Tuesday. Despite the small drop, gasoline prices remain near the record highs of just above 2.50 euros reached in June 2022. Recommended fuel prices have increased noticeably since the war in the Middle East began. Prior to the conflict, diesel cost 2.09 euros per liter, while petrol was priced at 2.28 euros.

The major oil companies’ recommended fuel prices mostly apply to highway service stations. Motorists can often pay much less if they refuel at other locations.

The small price drop comes after oil prices fell sharply on Tuesday, triggered by a post from the U.S. Secretary of Energy on X claiming that an oil tanker had been escorted through the Strait of Hormuz. The post was soon deleted, and the White House confirmed that no such military escort occurred.

U.S. oil is trading at 83.86 dollars per barrel, with Brent crude at 87.63 dollars. The Wall Street Journal reports that the International Energy Agency is considering the largest-ever release of strategic oil reserves to curb prices. This would surpass the 182 million barrels released by IEA member states in 2022 during two previous interventions. A decision on the plan may be announced later today.

The CNV union has urged the Dutch government to temporarily lower fuel taxes by 20 cents per liter in response to the surge in prices. “Taxes make up the largest part of what we pay at the pump,” says Piet Fortuin, chairman of CNV. “It’s up to policymakers to act. This tax should be temporarily reduced, as millions of workers are seeing their commuting costs rise sharply. Lowering the excise duty by 20 cents would provide significant relief for employees.”

“The nurses, mechanics, and road workers can’t work from home. Those in hands-on jobs, often living in the region, are bearing the brunt,” the union federation states. Union research shows that four in five employees are spending more on commuting, and 40 percent find it harder to cover living expenses because of the high fuel costs.

According to the same study, 81 percent of employees find that their employer’s travel reimbursement does not fully cover commuting expenses. One in four admits to filling up across the border to take advantage of lower fuel prices. “Policymakers need to step in immediately. Fuel prices are ridiculously high,” Piet Fortuin emphasizes.