How are fuel prices determined in Belgium?

Crude oil: Crude oil is extracted globally, pumped, and transported to refineries. There, it is heated and partially converted into fuel for cars and trucks.

Economic conditions: The price of crude oil depends on supply and demand. When demand exceeds supply, the price rises; when supply exceeds demand, the price falls. Factors such as natural disasters and armed conflicts also influence prices. The price of a liter of fuel consists of approximately one-fifth crude oil price.

Strategic reserves: Processing oil in refineries and storing it incurs costs. After refining, fuel is transported to depots and temporarily stored. Due to international agreements, minimum quantities of fuel must always be stored as strategic reserves. In a crisis, the government can rely on these reserves.

Excise duties and VAT: The largest part of the pump price consists of excise duties and VAT. Excise duty is a fixed government levy on fuel, a fixed amount in euro cents per liter, adjusted annually for inflation. VAT is also levied on excise duty.