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How is Fuel Pricing Structured in 2025?
For many entrepreneurs, fuel price is an important cost factor. Discover how the price per liter is determined and what share excise duty has in this.
Lisa van der Berg•2025-01-30•5 min read
Fuel Price Structure in the Netherlands
The price you pay at the pump for gasoline consists of four main components:
1. VAT (Value Added Tax) - 17%
The VAT rate on fuel is 21%. Because this tax is calculated on the final price (including excise), it ultimately accounts for about 17% of what you pay.
2. Profit Margin - 10%
Gas stations and oil companies keep an average of 10% of the gasoline price as margin. This is their business model on fuel sales and coverage for operational costs.
3. Production Costs - 30%
About 30% of the gasoline price consists of:
- Costs for extracting crude oil
- Refining into usable fuel
- Transport and distribution
- Storage costs
4. Fuel Excise - 43%
This forms by far the largest part of the price. The government sets a fixed amount per liter annually:
- Gasoline: €0.809 per liter (2025)
- Diesel: €0.489 per liter (2025)
- LPG: €0.212 per liter (2025)