We have undoubtedly noticed it all: prices at the pump are low. Very low. In March, fuel prices were a whopping 6.1 percent lower than in February this year, the strongest percentage decline since 2008.
According to reports from the Central Bureau of Statistics, which is based on data from Travelcard Nederland, since 2008 there has not been as much a percentage drop in fuel prices as in March. Then the prices at the pump were an average of 6.1 percent below that of February. In November 2008, fuel prices at the pump fell by 9.4 percent as a result of the monthly credit crunch.
The price of a liter of petrol fell on March 10 by 2.3 euro cents compared to the previous day, the sharpest decrease since October 17, 2008. Although fuel prices are also very low now, on April 20, a liter of petrol cost an average of € 1, 47, the price level is above that of 2008. In that year a liter of petrol on the ‘cheapest day’ went away for € 1.15. A liter of diesel cost an average of € 1.37 at a manned highway station in March and € 1.27 at a manned pumping station outside it. At unmanned stations, an average of € 1.23 was requested for a liter of diesel last month.
It should come as no surprise that highway service stations are generally the most expensive. The price difference between a liter of gasoline at a manned station located next to the highway and a manned station that is not located next to the highway, averaged € 0.11 in March this year. Unmanned pumping stations are often cheaper. In March this year, a liter of petrol cost an average of € 1.68 at a motorway station and € 1.57 at a manned pumping station that is not located on the motorway. For comparison: the average price of a liter of petrol with an unmanned pump last month averaged € 1.52.
The price development of fuel prices is partly related to the price development of crude oil. In March 2020, the price of a barrel of crude oil averaged $ 34. Only in January 2016 and 2018 that price was lower. Other things that affect prices are excise duties, VAT rates, the dollar exchange rate and the demand for fuel. In March this year, taxes and excise taxes accounted for over 66 percent of the price paid at the pump for a gallon of gasoline.