The Impact of the COVID-19 Pandemic and Crude Oil Price Crisis on the Price of Automobile Fuels in European Countries

Abstract – Coronavirus outbreak has had a notable global and national impact on the energy sector, contributing to a decline in the price of crude oil as well as lower prices of transport fuels in Europe. Furthermore, the oil price crisis due to Russia–Saudi Arabia oil price war was another shock which led to a significant drop in the prices of road fuels in European countries. Therefore, this study is aiming to examine the impact of the COVID-19, as well as, crude oil price on the prices of transport fuels in four European countries including; Italy, Germany, France, and Spain. The regression estimations demonstrate that COVID-19 pandemic has significant impacts on the prices of regular petrol_95, premium petrol_98, LPG and Diesel. The numbers of new cases caused by COVID-19 have positive impacts on the prices of transport fuels, while the impacts of the number of new deaths are negative. Moreover, the findings reveal a negatively significant impact of the crude oil price on the prices of automobile fuels in four sample countries. This paper also finds that the effect of oil price on transport fuels are more than the COVID-19 pandemic.

Keywords: Transport fuels, Retail price, COVID-19, Oil price, Europe

[Cite as: Ghazanfari, A. (2020). The Impact of the COVID-19 Pandemic and Crude Oil Price Crisis on the Price of Automobile Fuels in European Countries. Diverse Journal of Multidisciplinary Research, Vol. 2, Issue 6, Pages 10-19.]