01 - Developments of gasoline prices in the Netherlands

Wetenschappelijke publicatie
Publicatiedatum 1 januari 2002

At specified times the level of gasoline prices is bothering in the minds of many politicians and car owners. This article discusses the price developments of gasoline prices in the Netherlands and some other European countries from 1996 up till 2001 and shows that the level of Dutch gasoline prices including and excluding taxes and duty in this period is indeed considerable higher than in our surrounding countries. This higher level is despite a probable comparative cost advantage in the Netherlands. On the other hand, the size of price increases and decreases in this period show no indication for a lack of competition on the Dutch gasoline market. JEL classification: D49, E31, L11, Keywords: gasoline price levels, price stickiness, competition gasoline market.