Dutch petrol prices reach new record high as oil prices soar

Petrol prices in the Netherlands have risen yet again as the oil crisis continues. The suggested retail price for a litre of Euro95 petrol stood at 2,63 euros for the first time on Tuesday, May 5.

Record-breaking fuel prices in the Netherlands

Drivers in the Netherlands are feeling the impact as the conflict in the Middle East continues to drive up oil prices. On Monday, the price of oil reached 114 US dollars per barrel, leading to a knock-on effect on petrol prices around the world. 

On Tuesday, the consumer collective UnitedConsumers put the price of Euro95 petrol at 2,636 euros a litre in the Netherlands, the highest price recorded since records began in 2000. In June 2022, Dutch petrol prices rose above 2,50 euros per litre due to the Russian invasion of Ukraine. This record high was broken in March this year when the war broke out in the Middle East, and has been broken 14 times since.

Effects of rising petrol prices still to come

In March, experts warned that the full impact of inflation caused by the Middle East conflict had yet to hit Dutch consumers. Researchers also believed that inflation would increase further in the coming months. Indeed, inflation in April rose to 2,8 percent, according to Statistics Netherlands (CBS). However, when looking only at energy, the price increase was significantly higher at 7,8 percent. 

While some consumers in the Netherlands might not be feeling the pinch just yet, the effects will likely be felt in the coming months and years. Rabobank economists predict groceries to cost around 7 percent more by the end of the year.

"Here's the thing: producing food requires a lot of energy," Rabobank economist Cyrille Filott told NOS. "Bread, for example. Gas is used to bake bread. And making flour also requires a lot of energy." Then there is transporting of food from farms to supermarkets, which uses a lot of diesel, and oil products which are used for packaging. “By the time all those prices have been raised at every step, it will be Christmas."

The Dutch government earmarked 1 billion euros to support Dutch residents with the impact of the oil crisis. Included in the plan is a higher travel allowance, emergency energy funds and a discount travel pass for public transport.