Crude at $30: the impact on European pump prices

The Brent crude oil price declined by 64% between July 2014 and December 2015, whereas retail (pump) prices in Europe declined by 36.4% on a weighted average basis. In our latest European fuels marketing insight we investigate the trends in crude prices, oil product wholesale prices and their impact on retail fuel prices in Europe overall, as well as variations across individual markets. A review of a typical retail price structure highlights the greater proportion of largely fixed non-oil elements such as tax, duty and logistics costs, which limit the impact of the wholesale price movements on pump prices. The logistics cost element is further explored by looking at the supply and transportation challenges faced by some European markets in 2015.