Thanks to the rise of the euro
Fuel not more expensive due to rising oil price
The oil price and the euro are both on the rise. The latter is a windfall for motorists, because not much happens at the pump with the prices of petrol and diesel, writes Business Insider.
De price of North Sea oil (Brent) is currently trading around $70 a barrel, at a price of $45 a barrel in the middle of last year. At the same time, the euro Monday a level of more than $1,22 per euro, the highest level in 3 years.
Purchasing power is increasing
The advance of the euro also means that the purchasing power of the euro (against the dollar) is increasing. In other words: oil priced in dollars is becoming less expensive in euros. This effect is clearly visible if you take oil price in both dollars and euros.
The chart below shows the price development of Brent oil in dollars and euros over 2017. In both cases, the starting level of January 2017 has been set at 100. The graph is composed by data agency The report of Statista for Business Insiders.
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Oil prices (Europe versus the United States).
The light gray bars show the oil price in dollars. It rose by no less than 2017% in 17. The black bars show the development of Brent oil in euros, with an increase of only 5%. The difference is due to the fact that the euro has appreciated significantly against the dollar.
Excise duties and levies
For petrol prices, the crude oil price does not determine the pump price on a 1 to 1 basis, because in the case of petrol this consists for about two thirds of taxes. The average gasoline price was figures from the CBS on 1 January this year at €1,576 for 1 liter of unleaded euro, about 1% higher than on the same day 1 year earlier.
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Wouter Job
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