Gasoline hasn’t been that cheap this year, at least not for a while. That’s how it is!
Good news for the pump! For anyone still running on satanic juice, the price of oil is plummeting. Not only that, but the dollar is at its lowest point in over a year against the euro.
Since we pay for oil in dollars, that helps us to buy oil cheaper here in Europe. After all, if the dollar is worth less, it also costs less to buy something in that currency. If the price in dollars also drops, that is a double advantage. Petrol is finally getting cheap again! (relatively)
Don’t run to the pump
Now don’t rush to the pump with jerry cans and gas guzzlers, because the fact that the oil price is falling doesn’t mean that the price at the pump is also down. You know, expensive stock and such, so there is a delay on the line. We reported earlier about research into falling and rising oil prices, in short, we always pay 2 to 5 cents per liter too much.
But the T. has done the math and we are heading for the lowest price at the pump this year. At the moment, the average national recommended price (which you only pay on the highway) is 2.12 euros. Now, a barrel of crude oil cost a little less at the beginning of January than it does now, but then the dollar was worth more.
The dollar has lost three percent of its value since the beginning of the month, so the average national recommended price, which was 2.06 euros in January, is quickly approaching. The oil price is expected to fall even further, so the price will fall even further.
Oil price down
The oil price is in a downward spiral. The economic figures in China are disappointing and the industry in Europe is also demanding less oil. The Middle East is on fire and the oil traders expect OPEC to lift the restrictions on oil production.
The result is that in April a barrel of Brent oil cost 92 euros per barrel and now it costs around 78 euros. A drop of around 15 percent. Now the price at the pump is already falling more slowly, because the oil price only determines a small part of the price of a liter of oil. The rest is excise duty and VAT and if the pump owner is lucky, some margin. But the sweet is coming.
Gasoline cheap
For people who live near the border and like to fill up in Belgium or Germany: petrol is already cheap there, but they also respond to the oil price. Nice. Immediately buy tobacco and shampoo (Germany) and cans without deposit (Belgium). Will filling up be fun again? Although the price drop remains relative of course. It will never be really cheap again.
Photo via Car Whiz Spots. Spotter: @michaelras
Comments
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307-2.0-chipped say
Refueling is never fun. Maybe from < 1,=
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know say
I find the difference with E5 98 especially big here in the Netherlands, where in Belgium you see a difference of about 10 cents with the E10, the difference in our village is even over 30 cents! By the way, I have never filled up with our Mazda in the Netherlands. There and back from Ravels (where it is almost 15 cents cheaper than in Poppel) is 45 kilometers. I really do think it is worth it. This week I filled up for €1.56. Immediately took some more cans of 98 for the engine. Save quite a bit on an annual basis!
