It is the oil from Russia that drives the diesel price in the Netherlands to record highs
The prices of diesel and petrol are not only going through the roof, they are also moving closer together.
The suggested retail price for a liter of Euro95 is more than Friday 2.49 euros. For diesel that is 2.38 euros. The difference between the two fuels is now 11 cents. A year ago it was 35 cents.
That is extra annoying for diesel drivers, because they pay for more road tax in exchange for lower fuel excise duties.
Diesel driver has to drive 38,000 kilometers a year to play
Now that diesel is almost as expensive as petrol, you have to drive more than 38,000 kilometers per year with a modal diesel car to play. Only when you drive more, you are cheaper than with petrol. Six months ago, that turning point was still at 32,000 kilometers.
And it gets even crazier, because the cabinet is making the price difference between diesel and petrol smaller. As of April 1, the excise duty on petrol will be reduced by 17 cents and that on diesel by 11 cents. Based on current prices, the turning point will then be almost 48,000 kilometers. Only when you drive more, diesel becomes cheaper than petrol.
‘It is the Russian oil’
But why has the price difference between diesel and petrol shrunk so much in just one year? That is only partly due to the government, because the excise duties on diesel have grown only half a cent faster than those on petrol since last year.
No, the diesel price exceeds the price of petrol that is made in diesel from Russian oil.
Says gas station owner Ewout Klok from Hoogeveen. Klok is chairman of Beta, the interest group for petrol stations. “Russian oil is dirty. The refineries use a lot of energy to make clean car fuel. With the current high energy prices, that is an extra cost item.”
According to Klok, this problem occurs to a lesser extent with petrol. “Petrol is made from clean oil from Norway. It takes less energy than diesel to make clean car fuel.”
In other words: the high energy prices drive up the cost price of diesel much more than that of petrol.
The government is reaping a lot of money
Incidentally, that cost is only part of the price we pay at the pump. The government is reaping a lot of money in the form of excise duties and VAT. The current suggested retail price of 2.49 euros for a liter of petrol consists for more than 50 percent of excise duties and VAT. For diesel that is 40 percent.
This is the price structure of petrol and diesel on March 11, 2022 (Source: Bovag)
Gasoline | |
Production price and profit margins | €1.23 |
excise duties and levies | €0.83 |
Pump price ex. VAT | € 2.06 |
Pump price incl. VAT | € 2.49 |
Diesel | |
Production price and profit margins | €1.43 |
excise duties and levies | €0.54 |
Pump price ex. VAT | €1.97 |
Pump price incl. VAT | €2.38 |