Fuel prices drop in Netherlands as hopes grow over Strait of Hormuz reopening

Fuel prices in the Netherlands have eased slightly this week. According to consumer platform UnitedConsumers, the average price of a liter of petrol was 5 cents lower on Thursday than it was on Monday, while diesel prices fell by 6 cents per liter.

Pump prices have declined in line with lower global oil prices. The drop has been driven by optimism that shipping through the Strait of Hormuz will return to normal after Iran announced Wednesday that it had reached an agreement with Oman on navigation routes. The strategic waterway is one of the world's most important oil transit corridors, but tanker traffic has fallen sharply since the Iran war began in late February.

According to UnitedConsumers, the recommended price for a liter of Euro95 petrol fell to 2.575 euros on Thursday from 2.62 euros on Monday. Diesel dropped from 2.657 euros to 2.593 euros per liter over the same period. These are recommended pump prices, which are usually charged only at motorway filling stations, while prices at other locations are typically lower.

UnitedConsumers said petrol prices fell by roughly 1 cent and diesel by about 2 cents compared with Wednesday. Despite the recent declines, fuel remains considerably more expensive than before the outbreak of the war. The platform's figures show petrol hit a record high of 2.646 euros per liter on May 6, while diesel peaked at 2.819 euros per liter on April 8

Fuel prices climbed toward record highs again in late July as tensions in the Middle East continued, but have slowly fallen in the weeks since. The oil market is now closely watching whether negotiations between Iran and Oman could eventually result in a peace deal between Iran and the United States.

Although fuel prices have fallen in the Netherlands, filling up remains considerably cheaper across the border in Belgium. Drive, the industry association representing Dutch fuel retailers, warns that many stations near the Belgian border are struggling because of the price difference. The organization says the gap is largely caused by higher Dutch fuel taxes, while Belgium also limits prices through a maximum price system.

Drive adviser André Braakman says the situation near the border is becoming increasingly severe. "At staffed stations, they sell snacks, sandwiches, or tobacco, giving people a reason to stop there and refuel. But we are seeing that decline rapidly." The industry group is therefore calling on the Netherlands to reduce fuel excise duties.