What do you pay for when you fill up?
explanationTankslim
You fill up with forty liters and pay one hundred and eight euros. Where does that money go? Not where most people think.
The price of oil makes the headlines, but it is just one line item on the bill—and not even the largest one.
First: what does a liter cost today?
The Average National Recommended Price, calculated from the recommended prices of the five largest oil companies in the Netherlands. These figures are updated daily.
- Euro95
- € 2,719€ 2,711−0,8 ct
- Diesel
- € 2,765€ 2,767+0,2 ct
- LPG
- € 1,267€ 1,265−0,2 ct
- Super
- € 2,939€ 2,929−1,0 ct
- Super MLV
- € 2,959€ 2,939−2,0 ct
- Premium benzines
- € 2,932€ 2,924−0,8 ct
- Premium diesels
- € 2,855€ 2,858+0,3 ct
National average recommended price, with the change in cents versus yesterday. This is an advisory price - most stations charge less.
The six components
1. Crude oil — approximately 21%
The raw material. The price is determined on the global market and fluctuates based on supply and demand, international politics, exchange rates, and sometimes natural disasters. This is the part that makes the news, and over which no one in the Netherlands has any influence.
2. Refining — approximately 2%
At the refinery, crude oil is separated into gasoline, diesel, kerosene, and other products. This is also where legally required bio-components are added.
3. Storage and transport — approximately 3%
From refinery to depot to gas station. This also includes the costs of the strategic oil reserves maintained by the government for times of crisis.
4. Operating costs — 11% to 28%
The cost of the filling station itself: land rental, pumps, staff, and card readers. This component explains why an unmanned station on a provincial road can be cheaper than a highway service station with a shop and car wash.
5. Excise duty — 24% to 46%
A fixed amount per liter, set annually by the government and varying by fuel type. For petrol, this is by far the largest component.
6. VAT — 17.4%
Twenty-one percent on the total of all the above items. Because VAT is also levied on the excise duty, you are paying tax on tax.
Breakdown by fuel type
- Excise duty
- 45.6%
- Crude oil and refining
- 23%
- VAT
- 17.4%
- Operating costs
- 11%
- Storage and transport
- 3%
- Excise duty
- 34.9%
- Crude oil and refining
- 31%
- VAT
- 17.4%
- Operating costs
- 13.5%
- Storage and transport
- 3%
- Operations
- 28%
- Crude oil and refining
- 28%
- Excise duty
- 23.8%
- VAT
- 17.4%
- Storage and transport
- 3%
Three things stand out.
Petrol is the most heavily taxed. Excise duty and VAT together account for 63% of the pump price. For every euro you pay at the pump, well over sixty cents goes to the state.
Diesel contains relatively more oil. Raw material and refining costs are 31% compared to 23% for petrol, whereas excise duty is actually lower. As a result, the price of diesel reacts more strongly to fluctuations in the oil price.
With LPG, the cost lies in the pump itself. Operations represent the largest component at 28%—LPG installations are more expensive, and there are far fewer of them.
What this means for your fill-up
Look at the operating costs: 11 to 28 percent of the price, and this is the only component that varies from one filling station to another. Excise duty is the same everywhere. VAT is the same everywhere. The oil price is the same for everyone.
The difference of over forty cents per litre between the cheapest and the most expensive station in the Netherlands is therefore almost entirely due to that single component. Not the fuel itself—but the location and the service level of the station.
That is also the only part over which you, as a motorist, have any say. By choosing where you stop.
The percentages mentioned are indicative and fluctuate daily with the oil price and exchange rates. Excise duty rates are set annually.
