The oil price fell further on Monday, but the gasoline price remains reasonably stable. This is remarkable given that the demand is low and the oil-producing countries have little or no success in reducing supply.
According to United Consumers, the price at the pump is declining less sharply because the oil companies are nevertheless managing to maintain margins. “Gasoline is a kind of basic necessity of life and in that sense the price is less sensitive to the economic laws of supply and demand,” says Paul van Selms of United Consumers. “If you have to hit the road, you have no choice. You cannot postpone the purchase of fuel.”
The oil price was already quite low before the outbreak of the corona crisis and has now been at the level of twenty years ago for some time. “Prices at the pump are at the level of ten years ago,” said Van Selms. At the pump a suggested retail price of € 1,657 for 1 liter of petrol and € 1,280 for 1 liter of diesel now applies. “Strangely enough, the Dutch motorist must be happy with that”, says the director of United Consumers. “Given the high excise duty and the oil companies’ ability to maintain margins, a lower price is not very likely.”
The oil price dropped 3 percent on Monday, prices per barrel fluctuate around $ 40 (about € 33.83).