May 27, 2022

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17 kr cheaper fuel on Svalbard:

17 kr cheaper fuel on Svalbard:

The price of diesel and gasoline has never been higher. And on Wednesday, the price of diesel reached 27 kroner per liter in Tromsø. According to the Fuel App, one can find prices as low as 26 kroner per liter in Oslo on Thursday.

But the differences are big. At Circle K Longyearbyen in Svalbard, both diesel and petrol are priced as low as ten kroner per liter.

Circle K Longyearbyen’s general manager in Svalbard, Roger Eriksen, explains that the low price of fuel in Svalbard is due to separate tax rules.

Record: Wednesday was the first time the price of fuel reached 24 kroner per liter. In Tromsø you can find diesel prices as high as 27 kr per liter. On the other hand, the situation in Svalbard is completely different.

– First, Svalbard is tax-free, so almost everything here is sold without VAT and taxes. Secondly, fuel was purchased at a certain time at a certain price. The fuel is then put into a tank here in Longyearbyen, Eriksen tells TV 2.

General Manager Eriksen explains that as long as you have more in the tank than you bought on time, you can sell the fuel for the same price even if the price of oil goes up.

If you fill the tank farm at a different price, the selling price at the station will follow the same curve.

Ten kroner is too much

But despite the fact that one would like to think that fuel-starved customers from Svalbard could leave the station smiling, the reality is different.

– They obviously think ten kroner per liter of fuel is too expensive. The price was lower than before, so ten kroner is higher than usual here. The last time the price went up, it was adjusted by 1 kroner, says Circle K Longyearbyen general manager Roger Eriksen.

Eriksen says he faced a backlash after the fuel price increase.

– I understand very well that they interact. The government may now have a real headache, so I hope they have enough paracetamol.

But despite the disappointment among Svalbard residents, Circle K’s director of communications is pleased to be able to provide fuel at such a low price.

– I think the people at Longyearbyen are very happy with the fuel availability. And it’s certainly a good price, it’s been a few years since we’ve seen the mainland, says Circle K’s director of communications, Knut Hilmar Hansen, to TV 2.

Expect a price increase

On the other hand, the atmosphere in Tromso is completely different.

The price of a liter of diesel on Wednesday reached 27 kroner at Shell Ishavsporten in Tromsø. The price of gasoline was 25 NOK per liter. But on Thursday, prices fell to 26 and 24 for the same type of fuel.

An expert on diesel and gasoline prices predicts that prices will only rise in the future.

Professor Austin Fros of the Norwegian School of Management has studied diesel and gasoline prices for nearly 20 years. It is believed that the price of gasoline will rise further.

You can save: Professor Oystein Fros at the Norwegian School of Management believes that you can save extra money in these times if you are extra aware of where you are filling the tank.  Photo: Penelope Larsen / TV 2

You can save: Professor Oystein Fros at the Norwegian School of Management believes that you can save extra money in these times if you are extra aware of where you are filling the tank. Photo: Penelope Larsen / TV 2

He explains that the significant increase in oil prices that we witnessed last month is the reason for the increase in fuel prices.

– How this will continue depends on how the price of oil rises. The price of oil fell sharply again yesterday, but it may suddenly rise again. Then we get higher fuel prices, says Foros to TV 2.

clear advice

The professor explains that this is common with price differences from station to station, and he assures that you can save a lot of money if you are familiar with following gas station price tags.

VARIZ: A completely different fuel price was seen on Thursday in Tromsø than on Wednesday.

VARIZ: A completely different fuel price was seen on Thursday in Tromsø than on Wednesday.

– Today you can drive through a station with prices of 26 kroner per liter, while the prices of the neighboring station often reach 20. In Stavanger, prices are much lower than in Bergen, for example, continues the professor.

How do you think the development will be in the future?

The main key is how oil prices change. Now it’s down a bit in the last couple of days, but if it bounces back we could see new fuel price increases, expert says.

Foros emphasizes that the price increases we are seeing now have a clear link to the crisis in Ukraine. On the other hand, the expert believes that it is impossible to predict how long it will last.

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