Why are fuel prices different from country to country?
Fuel prices combine production costs with national taxation, making them differ substantially from country to country. Both oil producing and low-income countries tend to have significantly lower fuel prices, whereas those more dependent on energy imports and pursuing carbon emissions reductions have higher excise and carbon taxes, driving prices up. Taxation is the most significant differentiating factor. For example, fuel taxes make up more than 50% of the price at the pump in the European Union, with increases foreseen to help it meet its 55% reduction target by 2030.
Where can I find historical fuel prices?
The fuel price increases seen so far in 2022 are historic. The United Kingdom, for example, has experienced the most considerable unleaded petroleum price increase in 18 years. Tracking and analysing historical gas prices is an effective method of putting price changes into context. As an IRU member, you can get full access to a list that contains 10 years of historical oil prices in over 65 countries. Not only can you analyse data for a specific country, but you can also choose from up to five countries to compare in your currency of choice. In such a volatile market, petrol prices and diesel prices change rapidly. One benefit of using our historical list is that prices are updated weekly, meaning it remains accurate and current. Analysis of historical gas prices is essential for planning and preparation for potential operational problems. Besides ensuring adequate fuel quality and quantity can be satisfied, it also helps to establish operations, including fuel consumption, in the most efficient manner.
Why do fuel prices fluctuate?
There is a combination of factors that are related to the current fuel price hike. Firstly, we are seeing the highest rates of inflation globally than we have for around 40 years. The rise in inflation has also led to a weak exchange rate between the US dollar and the UK pound sterling, making matters worse. Another factor contributing to the record high fuel price is the volatile political situation, leading to fuel supply issues. The imbalance between gasoline supply and demand influences global crude oil prices enormously. Due to a more complex production process, diesel has always been more expensive, on average, than unleaded petroleum. This historical pattern was broken back in 2015 when supply and demand problems meant that there was a surplus of diesel, leading to lower prices in comparison to petrol in the United Kingdom. Fluctuation in prices is also affected by environment and seasonable changes. Regional prices are impacted mainly by market competition, meaning that bigger towns and cities often have cheaper fuel prices while motorways and more isolated areas have much higher prices.
IRU standard contract
When negotiating contracts with customers, the impact of fuel price increases should be duly taken into consideration. Ideally, the contract between the transport operator and the customer should include an adjustment system / fuel surcharge clause, based on a fuel price index. Click here to download our contract template and other fuel price resources (members only).
Sources: Xavvy, Global Petrol Prices, Japan Ministry of Economy, Trade and Industry, National Agency for Energy Regulation of the Republic of Moldova (ANRE), Golden Pages Uzbekistan.
100 base index: This trend uses a base of 100 on 1 January 2022. A value of 140 today, for example, means that the average rate increased from 100 to 140 (+40%) from 1 January 2022 until now.
Though the information presented here has been compiled with the greatest care, IRU cannot be held responsible for any errors or omissions.
