Petrol prices approaching new record as Iran war continues

The price of petrol at gas stations in the Netherlands is approaching another record. Pump prices rose slightly on Tuesday after the oil price reached its highest point in over a month on Tuesday. Diesel and petrol prices have been rising in recent weeks due to the resurgence of the war between the United States and Iran.

The recommended price of a liter of Euro95 rose by nearly 2 cents on Tuesday to €2.603, according to data from consumer benefits platform UnitedConsumers. The highest price for a liter of petrol was reached in May, at €2.646. Diesel prices rose 2.6 cents to €2.569 per liter.

The United States and Iran carried out attacks for the tenth night in a row last night. In recent days, ships in the region have also been targeted. As a result, shipping traffic is reluctant to sail through the Strait of Hormuz, an important waterway for the transport of oil and gas. The number of ships that have passed through the strait dropped to its lowest level in a month.

The petrol and diesel prices are recommended retail prices. These are typically only charged at the more expensive gas stations, like those along highways. Motorists can save significantly on fuel by choosing a gas station carefully, said the Authority for Consumers & Markets (ACM). According to the regulator, it can save up to 25 cents per liter.

This week, the ACM published a monitor in which it reported that the higher fuel prices have mostly led to more profits for oil companies. “This shows that companies in the first link of the chain - oil production and refining - account for a larger share of total profit since the price increases. This confirms the earlier picture that higher fuel prices have primarily led to extra profits for oil producers and refineries,” the regulator reported.

Experts fear that oil prices could rise further in the coming period. According to the American investment bank Goldman Sachs, the price of Brent crude, the benchmark for oil from the Middle East, could rise to more than 120 dollars per barrel in the fourth quarter if disruptions in the Strait of Hormuz persist. The price already exceeded that limit once at the end of April.

A rise in oil prices typically shows up at the pump with some delay. However, the price of Brent crude fell by about 1 percent on Tuesday and dipped back below 90 dollars per barrel. Analysts at Goldman Sachs expect the price of Brent crude to drop to 80 dollars per barrel if tensions in the Middle East ease.