‘Weak euro position may make refueling even more expensive’

For the first time in about twenty years, the euro was worth as much as the US dollar on Tuesday morning. Although the euro appreciated against the dollar shortly after the so-called parity level was reached, the European currency is at a significant low. A weak euro means that buying dollars becomes more expensive. Not the best thing, and certainly not for the motorist. After all, oil is settled in dollars, with the result that fuel prices are expected to rise further.

ING economist Bert Colijn says to Nu.nl It is clear that the import of crude oil into Europe is charged in dollars and that it does not matter where the oil comes from. It is not yet known to what extent consumers will have to spend more on fuel. Earlier this month, the oil price reached its lowest point in twelve weeks, causing fuel prices to fall slightly. The oil price fell for fear of a recession. If that recession becomes a reality, the demand for oil will fall as consumers buy less and companies do less. As a result, companies need less oil, for example for the transport of goods. A recession can also lead to job losses, resulting in less commuter traffic.

According to United Consumers, the Average National Price (GLA) of a liter of petrol at the time of writing is €2.38. This means that a liter of Euro95 (E10) currently costs about 4 cents less than on 7 July. On June 8, the GLA for a liter of Euro95 (E10) reached an all-time high with €2.504. The Average National Retail Price of a liter of diesel is €2.23 on Tuesday. Diesel is also about 4 cents cheaper per liter than on 7 July. In June, Paul van Sems, market expert at United Consumers, explained that the fuel price ‘is kept high’ despite the falling oil price. As of April 1, the excise duty on petrol has been reduced by 17.3 cents, on diesel by 11.1 cents. The excise duty on LPG and LNG was also reduced by 4.1 cents per litre. The reduction in excise duty will in any case apply until December 31, 2022. If the reduction in excise duty had not been implemented, you would currently lose €2.55 per liter of petrol.