‘The Dutch refuel less and at a cheaper pump’ | Money

According to the bank, an analysis of transaction data shows that debit card turnover at gas stations has risen much less rapidly than the average fuel price over the past six months. “By moving to cheaper locations or refueling with fewer gallons, households ease the pain in their wallets,” the bank said in a report on Thursday.

Compared to six months ago, the average fuel price is more than 30% higher. However, the total value of debit card payments at petrol stations rose by only 15%, ie by half the increase in the fuel price. “That means car owners have eased the pain in their wallets by adjusting their fueling behaviour.” This can be done by refueling less or cheaper, for example at a pump just across the border.

The ‘average suggested retail price’ for a liter of Euro 95 petrol is €2.44 on Thursday. With many unmanned pumps, the motorist pays about €0.20 less. The price has been rising at a rapid pace for over a year, and especially since the war in Ukraine broke out.

Abroad

According to ING, the increase in fuel prices is bad for the Dutch economy for several reasons. “The amount that households have to spend extra on fuel then largely flows abroad and can therefore not be spent domestically on something else, for example a visit to a restaurant or a weekend outing. How hard this effect ultimately affects the economy depends on how households respond to the significantly higher fuel prices.”

Consumers have mainly tried to ease the pain by reducing the cost per fill up, not by going to the pump less often than usual. The number of debit card transactions is still around the level of six months ago.

ING thinks it is good news that the Dutch are cutting back on fuel. “It means that they have to cut back less on other things, such as a visit to a restaurant or an outing.”

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