Fuel purchasing power varies widely across European Union member states

Fuel costs and taxation levels reveal significant disparities in purchasing power across the European Union. While pump prices may appear similar between member states, the amount of fuel an average worker can afford with a monthly salary varies drastically.

In Northern and Central European nations such as Luxembourg, Denmark, the Netherlands, and Austria, average monthly salaries allow for the purchase of between 1,800 and over 2,400 liters of gasoline. In countries like Germany, France, Italy, and Spain, this range falls between 1,200 and 1,600 liters. Conversely, in Greece and several Eastern European nations like Bulgaria and Romania, a monthly salary covers only 500 to 800 liters. In Greece specifically, an average net salary of approximately 1,150 euros allows for the purchase of about 525 liters of 95-octane unleaded gasoline.

Taxation also plays a major role in consumer costs, with nearly half of what drivers pay at the pump going to the state. In the EU, taxes average 0.976 euros per liter, representing 47.3% of the total price. The Netherlands is noted for its high taxation. Fuel is taxed through a two-stage process: an excise duty per liter and Value Added Tax (VAT), which is applied to the price after excise duties have been added.