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Price relationships between crude oil and transport fuels in the European Union before and after the 2008 financial crisis

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  • Moutinho, Victor
  • Bento, João Paulo Cerdeira
  • Hajko, Vladimír

Abstract

The purpose of this paper is to investigate the relationship between the crude oil price and consumer prices of transport fuels in the European Union before and after the 2008 financial crisis. We perform a two-period analysis by providing pre-break and post-break estimates. We found a strong and reciprocal linkage between crude oil and gasoline prices in the pre-break period, but there does not seem to exist a similar relationship in the post-break period. The findings are robust to variations in the specification of the empirical models with and without applicable taxes.

Suggested Citation

  • Moutinho, Victor & Bento, João Paulo Cerdeira & Hajko, Vladimír, 2017. "Price relationships between crude oil and transport fuels in the European Union before and after the 2008 financial crisis," Utilities Policy, Elsevier, vol. 45(C), pages 76-83.
  • Handle: RePEc:eee:juipol:v:45:y:2017:i:c:p:76-83
    DOI: 10.1016/j.jup.2017.02.003
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