‘Decline could have been greater’
Compared to two years ago, it is still crying at the pump, but fuel prices have been dropping for a while. There seems to be a good chance that the decline will continue for a while.
You can be cheaper locally, but the Average National MSRP for petrol is now €2.33 and for diesel at €2.18. That is quite a bit lower than last month, when it was €2.50 and €2.33 respectively. This is evident from data from consumer collective United Consumers. The falling oil price is the reason for the lower petrol prices: the price of a barrel of oil has been falling for some time due to fears of a new recession.
If the economy stops growing, the demand for oil falls. The market expects lower demand and that is now weighing on the price. The risk of a recession is increasing. High inflation will mean that consumers will have less to spend and that will weigh on the economy. Further falls in oil prices cannot therefore be ruled out.
Expensive dollars a problem
The falling oil price is only partly noticeable at the pump, mainly because of the weak euro against the dollar. “The drop could have been even greater if the dollar hadn’t become so expensive. The expensive dollar means we have to pay more euros for the oil and that takes away some of the price reduction,” said Paul van Selms, director of United Consumers In addition, the oil price is only a small part of the petrol price.” More than half consists of taxes and excise duties. And they have now been temporarily reduced, but whether that will remain so after January 1 is uncertain. The government can also make good use of the money,” says Van Selms.
– Thanks for information from Autoweek.nl