Fuel Tourism in Dutch Border Regions: Are Only Salient Price Differentials Relevant?

Abstract

Using detailed data on consumer payments, we find only limited evidence that fluctuations in cross-border fuel price differentials are relevant for Dutch consumers. Consumers living close to the German border did react to a salient increase in Dutch excise fuel duties in January 2014. However, the increase of fuel tourism was only temporary. Secondly, there are no robust indications that fuel tourism is relevant for Dutch consumers living further than 10 kilometres from either the border with Belgium or Germany. The apparent absence of fuel tourism may either be explained by the widespread use of loyalty cards or by the low level of international commuting by Dutch workers.