Fuel prices

Indicator Assessment
Prod-ID: IND-114-en
Also known as: TERM 021
Created 17 Nov 2015 Published 15 Mar 2016 Last modified 15 Sep 2016, 05:17 PM
Topics: ,
Since 1980, the real price of transport fuel has fluctuated between 0.75 and 1.25  EUR  per litre, with an average of 0.98  EUR . This price covers all transport fuels expressed as the equivalent consumption in unleaded petrol, corrected for inflation to 2005 prices and including taxes. At just  0.96   EUR, t he average European fuel price in December 2015 was slightly lower than the long-term average . The price of fuel is an important determinant of the demand for transport and the efficiency with which fuel is used. Both freight and transport demand have increased significantly over the past years. The level of internalisation of environmental externalities through fuel taxes has, however, not significantly changed during this period. T axes on transport fuels have not been widely used in Europe as an  environmental  policy measure that directly influences transport demand levels, thereby reducing environmentally harmful effects caused by the sector .

Key messages

  • Since 1980, the real price of transport fuel has fluctuated between 0.75 and 1.25 EUR per litre, with an average of 0.98 EUR. This price covers
    all transport fuels expressed as the equivalent consumption in unleaded petrol, corrected for inflation to 2005 prices and including taxes.
  • At just 0.96 EUR, the average European fuel price in December 2015 was slightly lower than the long-term average.
  • The price of fuel is an important determinant of the demand for transport and the efficiency with which fuel is used. Both freight and transport demand have increased significantly over the past years.
  • The level of internalisation of environmental externalities through fuel taxes has, however, not significantly changed during this period. Taxes on transport fuels have not been widely used in Europe as an environmental policy measure that directly influences transport demand levels, thereby reducing environmentally harmful effects caused by the sector.

Are fuel prices leading to decreased pressures on the environment?

Nominal and real fuel prices

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Table
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Consumption-weighted average of real fuel tax

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