Oil makes petrol, diesel and jet fuel. It is also in plastics and packaging, and it runs the tractors and lorries that bring food to the shop.
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Every price includes the cost of moving things. Lorries, ships and planes burn oil. When oil gets dearer, transport costs more, and shops pass part of it on.
A barrel holds 159 litres. At €80 a barrel, the oil in one litre costs about 50 cents. If oil doubles to €160, that part becomes about €1.
Oil doubles, so petrol doubles? No. The tax per litre stays the same. In a made-up €1.68 litre (€0.70 tax, €0.20 costs, 20% VAT), doubled oil makes it €2.29: about a third more.
EU countries must tax petrol at least €0.359 a litre, and most charge more, plus VAT of 17% to 27%. Compare the price per litre on this month’s fuel receipt with last year’s.
Oil moves fuel, plastics and every delivery. A fixed tax per litre means the pump moves less than the barrel.
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Compare this month’s fuel price with last year’s.
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