Diesel Price

Diesel price graph
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Diesel price

The diesel price is constructed differently in all coutnries. In the specific case of diesel, the price is about 31% of costs for the raw fuel. The storage and transport costs are about 17% of the price. About 14% is exploitation costs and the biggest part of it all is taxes in the countries. The Netherlands is one of the most expensive coutnries when it comes to taxes and VAT, which they have 35% of on diesel. This is why people usually gas up in the neighbouring countries, where the difference can be up to 20 cents per liter! Of course the corona crisis and the war in Ukraine have a huge influence on this price. This causes there to be less transport employees, stronger hygiene measures, which we can all notice in the rising price. The move of Brexit has also not benefited the price. The raw material itself is also becoming more scarse and more difficult to buy in at a benificial price.

What creates the diesel price?

The diesel price is mostly made up out of taxes and VAT. This is money that the governments of countries take when paying for you diesel. A large portion also goes to the price of the crude oil. Worldwide more and more oil fields are running out of oil. The governments are also enforcing more pressure on organizations that pump the diesel by enforcing more climate rules for example. The expectations are that the upcoming years the price will only go up. Not just because of scarcity, but also because this raw material is being used more and more. The shortage of employees also causes higher transport costs. This means the price will only go up.

What factors influence the price?

There are many factors that influence the diesel price. Take the high percentage of taxes that are added to the price of diesel. Governments play a big role in determining the limits of the rise in prices. Some countries have low taxes and others have higher taxes. The crude oil price is currently also very high, which means that the fuel prices also go up. The shortage of oil means a low supply, which also means that the price will go up. A barrel of crude oil is currently auctioned off at higher rates than ever. The corona pandemic also made people choose new professions because of lay-offs, this caused a shortage in staff. This is an international problem for the price of diesel.

To who matters the diesel price most?

The influence of diesel price goes beyond just consumers. Because of the ever increasing demand for shipping and sending packages, employers also feel the increase. A lot of people started ordering a lot more because of corona, for the same pricing. The price of fuels went to levels where these normal prices were no longer justified. A postal service can not just raise their prices at any point, so it is expected that new years will bring higher mailing tariffs as well. The companies are also hurt in their delivery times because of the increase in demand and low budgets, which means delays. To make up for shortages they have to hire expensive employees to make up for lost time, which means more costs.

Why do we need a good diesel price?

A good and preferably cheap diesel price influences us all. To consumers it means that they can make trips to work or city trips by car much easier. This has a positive influence on the society in the countries in general. We also notice that the costs for receiving and sending packages will go up. The courier industry, and in specific postal offices, use a lot of diesel for their vans which they use to carry the packages. Often they are even hiring entrepreneurs who cost a lot more than normal employees. Next to that, more households get multiple cars. They might be going to carpool more of use public transport, to lower costs.

This is how the price is made

The diesel price starts at the price of crude oil. This is yielded in different areas, but mostly from the Arabic countries. Then we land on to the transport costs, that will go up with the costs of crude oil.  The trucks that transport this are also not running on water, but diesel of course. Then you are talking about exploitation costs. The pump owner wants to make a little bit of money to pay their rent, personell and cleaners. The government also profits from it, hugely actually, by taking about at third of the total price in taxes and VAT. This is a pretty high number, especially found in the Netherlands, but other countries have high taxes as well.

A good diesel price influences the cost of a company a lot

Cheap diesel is something that gets to the whole society of a country. Weekly the prices of crude oil change and because of scarcity and the increasing demand, the price just goes up and up. A company that pays less for the fuel will in the future also offer their service cheaper. This is better for the economy in general. They also have more wiggle room when negotiation a price on an offer. Besides this, they are able to take on more jobs, work more efficient and the only thing they cannot change is the taxes that are attached to this diesel price. All of society agrees that a change needs to be made. In order to find the right price of diesel, the government needs to step in and change something. A continuous rising diesel price is a negative effect on the whole world.


The diesel price is an interesting phenomenon that has a huge impact. Nobody benefits from higher pricing, yet the prices are rising. This has more to do with geopolitical powerplay and will be a thing of the past once things have settled down. When this will happen, nobody can say for sure. But once an economy falls, it is hard to get back up and that is a scenario that nobody is willing to risk. So let’s hope to see the price of diesel go down in the near future.

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