The fluctuating price of fuel at the pump, both for gasoline and diesel, is the result of more than just production and distribution costs. In fact, there are two main factors at play: excise and value added taxes (VAT). Typically, in the EU, more than half of the fuel’s price is tax-based, all of which vary greatly from country to country. Excise taxes tend to be higher for gasoline than for diesel, which consequently has a direct effect on the Diesel/Gasoline imbalance.
Figure 1: Breakdown of automotive diesel prices across the EU Member States. Click on the image to enlarge.
Figure 2: Breakdown of automotive gasoline prices across the EU Member States. Click on the image to enlarge.