Categories: News

Excise reduction doesn’t help at all! Petrol price back on track to record

Two months ago, excise duties on petrol, diesel and LPG were lowered. Nice! Finally rid of the high fuel prices. But unfortunately that’s not how it went. The suggested retail price of petrol is steadily rising and is already almost back to the old level before the excise duty reduction. What is going on?

On April 1, the excise duty on petrol went down by 17 cents, that on diesel by 11 cents and that on LPG by 4 cents. This is in an effort to bring down sky-high fuel prices. Due to, among other things, the increased oil price and the war in Ukraine, these reached a record high on March 10. Petrol then cost 2.50 euros, for diesel you paid 2.37 euros. The price of LPG peaked 20 days later, at 1.40 euros.

Diesel and LPG prices remained relatively favourable

Strangely enough, the diesel and LPG prices have remained relatively favorable after the excise duty reduction (we are now at 2.07 euros and 1.27 euros respectively), but the petrol price is on the rise again. At the time of writing, it stands at 2.36 euros. With the 17 cents of the excise duty reduction on top, that is therefore 2.53 euros, a new record. How is it possible that petrol prices at the pump are soaring again?

Why is the gasoline price rising so fast?

  • The oil price is rising again and is around 115 euros per barrel. This is partly due to the uncertainty surrounding the war in Ukraine and Western sanctions against Russia.
  • The strong dollar. Oil is paid in dollars and so companies pay more for a barrel if the dollar rate rises, which is what has been happening lately.
  • Refining costs are on the rise. Energy prices have risen and so are oil refineries. Processing crude oil into petrol, diesel, LPG, kerosene and heating oil takes a lot of energy.

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