Transport fuel prices and taxes

Indicator Assessment
Prod-ID: IND-114-en
Also known as: TERM 021
Created 15 Sep 2016 Published 01 Dec 2016 Last modified 01 Dec 2016
12 min read
Topics: ,
Since 1980, the real price of transport fuel, including taxes, has fluctuated between EUR 0.75 and EUR 1.25 per litre, with an average price of EUR 0.98 per litre. This price covers all transport fuels and is expressed as the equivalent consumption of unleaded petrol. It is corrected for inflation to 2005 prices and includes taxes. At just EUR  0.98 , t he average European fuel price in June 2016 was slightly lower than the long-term average . Both freight and transport demand have increased significantly over the past years. The extent to which fuel taxes have been used to internalise environmental externalities has not significantly changed during the period in question. T axes on transport fuels have not been widely used in Europe as an  environmental  policy measure that can directly influence transport demand levels. Such a tax  which would reduce the environmental harm caused by the sector .

Key messages

  • Since 1980, the real price of transport fuel, including taxes, has fluctuated between EUR 0.75 and EUR 1.25 per litre, with an average price of EUR 0.98 per litre. This price covers all transport fuels and is expressed as the equivalent consumption of unleaded petrol. It is corrected for inflation to 2005 prices and includes taxes.
  • At just EUR 0.98, the average European fuel price in June 2016 was slightly lower than the long-term average.
  • Both freight and transport demand have increased significantly over the past years.
  • The extent to which fuel taxes have been used to internalise environmental externalities has not significantly changed during the period in question. Taxes on transport fuels have not been widely used in Europe as an environmental policy measure that can directly influence transport demand levels. Such a tax which would reduce the environmental harm caused by the sector.

Are fuel prices leading to decreased pressures on the environment?

Nominal and real fuel prices

Chart
Data sources: Explore chart interactively
Table
Data sources: