7 min read Price composition

What makes up the price at the pump

Crude oil, refining, distribution and tax: four layers that stack up differently in every country.

What you'll take away
  • Every pump price stacks four layers: crude, refining, distribution and tax.
  • Crude oil sets a rough floor most countries share; tax is what usually explains the rest of the gap.
  • A price change doesn't always mean oil got more expensive. It could be tax, currency, or a scheduled revision.
  • We show the total price, not the layer-by-layer split, since that breakdown isn't part of the underlying data.
1

Four layers, every country

Every pump price is built from the same four layers, whatever country you're in: the crude oil itself, the cost of refining it, distribution and margin, and tax. What changes from country to country is how big each layer is, not whether it's there.

Netherlands
Germany
United States
Crude oil and refining Distribution and margin Tax (duty + VAT)

Illustrative shares only. Real shares change with tax policy and the current cost of oil.

2

What each layer covers

The four layers of a pump price:

Layer
What it covers
Why it varies
Crude oil
The cost of the raw material, priced on world markets against a benchmark such as Brent.
Sets a floor that every country pays roughly the same for.
Refining
Turning crude into finished petrol or diesel, plus the refiner's margin.
Varies with refinery capacity and how much fuel a region needs to import.
Distribution and marketing
Transport, storage, and the retailer's own margin at the pump.
Usually the smallest share, but higher in remote or low-volume markets.
Tax
Excise duty (fixed per litre) and VAT (a percentage), set entirely by national policy.
The part that varies most from one country to the next.
Same crude, different pump price

Two countries buying crude at close to the same world price can still end up with very different pump prices, because refining costs, distribution and, above all, tax stack on top of that shared starting point.

3

Crude oil, refining and distribution

Crude oil is priced on world markets against a benchmark, commonly Brent crude, so every country's raw material cost moves with the same global swings. Refining turns that crude into finished petrol or diesel, and its cost depends on how much refining capacity a region has and whether it needs to import finished fuel rather than crude.

Distribution and the retailer's own margin add the cost of getting fuel from a refinery to a pump, plus a markup. This is usually the smallest of the four layers, though it can be larger in remote or low-volume markets.

See Brent crude explained →
4

Tax: the layer governments control

Tax is the layer set entirely by national policy rather than by markets, and it's usually where the biggest country-to-country differences come from. It has two parts: excise duty, a fixed amount per litre, and VAT, a percentage charged on top.

Because duty is fixed in money terms, it becomes a bigger share of the price when the pre-tax cost is low, and a smaller share when oil prices rise.

See how excise duty works →
5

Why the pump price lags the oil price

A move in the world oil price doesn't show up at every pump on the same day, for a few reasons.

Contracts and inventory
Retailers often sell fuel bought weeks earlier, so today's crude price isn't fully reflected yet.
Currency moves
Crude is priced in US dollars, so a country's own currency moving against the dollar changes the local cost even if the dollar price of oil doesn't.
Scheduled reviews
Some countries only reset prices on a fixed cadence, which is exactly what a government-fixed price does.
Watch the total move

Compare a country's weekly change against oil market news to see how much of a move is duty, currency or crude.

Open the price explorer
6

Common mistakes to avoid

A short list of the errors that most often come from thinking about price composition too casually.

Assuming a price change means a change in oil cost A jump can just as easily be a duty change, a currency move, or a scheduled price revision.
Treating the split as fixed The tax share, refining margin and distribution cost all shift over time and by fuel type, so yesterday's split doesn't describe next month's.
Comparing your guess at the split with actual receipts We don't publish a per-country duty/VAT/pre-tax breakdown ourselves. treat percentages you see elsewhere, including in this guide, as illustrative unless sourced to an official body.

Questions and answers

Does OpenVan.camp or your site publish the tax breakdown for each country?

No. We show the total national average price, with its date and sources, but the crude, refining, distribution and tax split isn't part of that data. Figures in this guide are illustrative, not a per-country dataset.

Why did a country's price jump overnight with no change in oil markets?

Some countries reset prices on a fixed cadence, which is exactly what a government-fixed price does. A tax change or subsidy adjustment can also move the pump price without any change in the crude market.

Is the split the same for petrol and diesel?

Not always. Diesel often carries a different duty rate and may be subsidised separately, so the crude-refining-distribution-tax split can look quite different for diesel versus petrol in the same country. The IEA Energy Prices database tracks end-use fuel prices including tax components across member countries.

Terms used in this guide

Keep reading

4 min min · Comparing countries

How to compare fuel prices between countries

Why the same litre isn't the same price: currencies, units, grades and taxes.

5 min min · Running costs

Petrol or diesel: which costs less to run?

Price per litre is only half of it. Fuel use, taxes and distance decide.

6 min min · Policy and subsidies

Why some countries have very cheap fuel

Subsidies, price caps and fixed prices, and what they mean for travellers.