Fuel prices in Europe have been increasing rapidly since the beginning of the war in Ukraine. On average, according OPIS, the price of gasoline in the European Union increased by 14% since February 24, reaching today 2.02 €/liter (or $8.22/gal).
The countries in the European Union are not homogeneous when it comes to fuel prices. In Finland, the most expensive country, the liter of gasoline hits 2.48 €/liter ($10.09/gal). In Slovenia however, the gasoline is sold for 1.56 €/liter ($6.32/gal).
Those differences reflect how governments, faced with rising inflation and the anger of motorists, are trying different types of measures to protect drivers.
For instance, in Italy and in the Netherlands, both governments decided to cut excise duties. In Italy, the March 23 cut resulted in a 30-cent drop, while in the Netherlands, the April 1st cut translated in a drop by 20 cents.
In France, the government did not lower the excise duty but introduced a 15 cents per liter discount on April 1st. The discount is applied when drivers pay at the gas station.
In other countries, governments set up price caps. For instance, the Slovenian government imposes a price cap of 1.56€ per liter.
However, as can be seen on the graph below, those costly measures only have a temporary effect and in some countries, the impact is almost already offset. As prices keep increasing, government will face hard decision. And drivers may increasingly look at electric vehicles for their next car.
