How is the Dutch petrol price structured?
More than half of what you pay for petrol goes to the central government in the form of excise duties and VAT (value added tax). Most of that VAT is levied on excise duty, which accounts for more than half of the fuel price. So tax on tax. You pay for the use of a car through these taxes: if you don’t drive, you don’t buy fuel. Incidentally, diesel and LPG are relatively cheaper in terms of excise duty.
Excise is a fixed levy from the government on fuel, among other things. In 2022, the excise duty increased with an inflation adjustment of 1.3 percent. The fixed amount per liter on petrol is now 83.2 cents, on diesel 53.6 cents and on LPG 19.9 cents.
The rates go up every year with an inflation adjustment. It is therefore conceivable that if the oil price falls and the excise tax rises, the fuel will still become more expensive. Apart from the annual adjustment, the excise duty does not therefore take part in the fluctuations in fuel prices.
The government levies VAT on the fuel price, including excise duty. It is 21 percent for fuel. Because it is a percentage, the VAT amount moves along with the fuel price.
The cost of producing gasoline is about 35 percent of the total cost at the pump, according to United Consumers. This amount can fluctuate because it is partly determined by the price of crude oil.