Double the oil

I just noticed something interesting in the ratio between the price of a barrel of crude oil and the gasoline price in The Netherlands.

In the year 2000, the average price of a barrel of crude oil was $ 33.40 and a liter of normal gasoline at the pump was 2.70 guilders, or € 1.22. Today, the 22nd of May 2008, oil peaked at $ 135 and a liter of normal gasoline at the pump is € 1.55.

This means that the price of oil quadrupled, but the price of gasoline only increased 37%. So why is the price of our gas so low?


To check the gasoline prices, check http://www.shell.com/home/nl-nl/html/iwgen/app_profile/nl-nl_hoeveelkost.html. The price in 2000 is from 21-06-2000. The price in 2008 is from 22-05-2008.