Oil production ramped up
A group of oil-exporting countries will significantly increase its production in July. It is the third month in a row that the OPEC+ countries have increased production more than expected. As a result, trade prices for oil may fall, which is favorable for motorists.
If oil prices remain low for a longer period of time, this will affect gasoline prices. However, other factors also play a role, such as taxes and the pricing policy of the gas station company concerned. The average recommended price for a liter of gasoline (E10) in the Netherlands is now €2.10, according to figures from consumer collective UnitedConsumers. You pay less at many gas stations because they give a discount.
If politicians do not intervene, gasoline will become much more expensive next year. A discount on excise duty will expire on January 1, which would increase the price of a liter of gasoline by 25 cents. Minister Barry Madlener (Infrastructure) previously called on the House of Representatives to take measures. More clarity should come with Budget Day.
Why the oil countries are setting a new course is not entirely clear. Some involved suggest that Saudi Arabia, one of the most important producers, wants to appease US President Donald Trump and also wants to gain market share. Others say that the Arab country wants to punish other members, such as Kazakhstan and Iraq, for violating their production quotas.