Despite a sharply lower oil price on the world market on Monday, petrol and diesel at the Dutch pump will become more expensive again on Tuesday, albeit by a maximum of 1 cent. How is that possible?
The price for both petrol and diesel will rise very slightly tomorrow, thinks Derk Foolen of United Consumers, the collective that daily collects national fuel prices based on the five largest oil companies in the Netherlands.
A liter of gasoline costs 2,455 euros on Tuesday, diesel costs 2,259 euros, although prices at many unmanned and local gas stations are often tens of cents lower per liter.
That slight increase is due to all the uncertainty, Foolen suspects: lack of clarity about it provisional agreement between the US and Iran and the continued threats about whether or not to close the Strait of Hormuz again. “Oil companies are waiting until there is more certainty, which is also a reason why pump prices are slowly falling and are now rising slightly.”
The Netherlands Authority for Consumers and Markets (ACM) announced in May that it research looks at the prices at the pump. She wants to know why the price of gasoline falls less rapidly once oil prices fall, and rises more sharply when world market prices rise. The ACM suspects that the major oil companies will make off with the largest profits.
Diesel drivers are the best bet
Calculated over a longer period, diesel drivers are better off. Diesel has become more than 50 cents cheaper since the peak reached in April. The price for this fuel reached an all-time high of 2.82 euros per liter on April 8, which is 57 cents more than now.
Petrol has also fallen in price over a longer period, but less. A liter of Euro95 still cost 2.65 euros per liter on May 6 and is now 2.46 euros, a price drop of almost 20 cents. Diesel benefits more from the negotiations because that fuel is extra sensitive to tensions surrounding oil supplies from the Middle East.
Barrel of oil falls below 80 dollars
Oil prices on the world market fell sharply on Monday after all signs of progress. Brent crude, the benchmark for oil from the Middle East, became almost 2 percent cheaper and fell below $80 per barrel.
A price of $77, which was reached later in the day, was last seen on March 2 this year, when the skirmishes between the two countries were just beginning.
Gas is also cheaper
European gas prices are also showing a decline. On the leading Amsterdam gas exchange TTF, the price fell to 41.65 euros per megawatt hour on Monday. This is a clear difference from the peak in March, when the price was above 55 euros per megawatt hour and even reached 58 euros.
A lot of liquefied natural gas is transported via the Strait of Hormuz. Traders are less afraid of energy supply disruptions and energy companies expect to be able to replenish their European gas supplies more quickly this summer.
That may be good news for households and businesses; They may spend less on their energy bills next winter than previously feared.
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