December 9, 2022

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Oil prices drop – fuel prices still high – NRK Sørlandet – Local news, TV and radio

Asbjørn Dahl says the tank is full and the wallet is empty.

He filled up the car’s tank and a couple of cans of petrol.

He says he closes his eyes while doing so.

That’s how far it goes on the counter, so you can’t see the total.

Last week, NTB wrote that Norwegians think cutting taxes on fuel is the most important thing to protect the economy right now, next to electricity subsidies.

Dahl says that if he continues like this, he will put the whole country on his back.

– Very poor competition

Fuel prices remain above NOK 20 per liter in most parts of the country despite lower oil prices.

The Consumer Council has responded to this.

– They raise prices very quickly when crude oil prices rise, but do not cut prices quickly when crude oil is cheap. We criticize it, says Olav Kasland, director of the Norwegian Consumer Council.

He believes the industry always comes up with some explanation for why fuel prices don’t fall in line with oil prices.

Casland believes one of the reasons for even higher fuel prices is too little competition.

– Today there are four major players dominating this market. It’s too bad.

Apparently he would like to see it be as easy to lower prices as to raise them.

On Tuesday, the price was NOK 23 per liter at many gas stations in southern Norway. A liter was NOK 28 this summer. In some places you can even make 30.

– Many factors come into play

There are many who believe, says Knut Hilmer Hansen, communications manager for the Norwegian circle. The price of crude oil determines the purchase price of petrol and diesel.

He says it is not true.

There are other factors that help determine the level of prices seen at the pumps, not least the supply and demand for pre-refined petrol and diesel in the international market. Availability of the biofuels we blend into petrol and diesel, exchange rates and price wars also play a role.

He cites the war in Ukraine and the energy situation in Europe as reasons for the rise in fuel prices in recent months.

What do you think of the Consumer Council’s criticism?

I understand that many people are surprised, because this is not the first time trying to explain how the market works. But I think it’s a bit odd that they didn’t contact us directly.

According to Hansen, higher fuel prices are not making them more profitable.

– Someone else in the value chain collects the profit here.

Knut Hilmer Hansen

Norway Norway Knut Hilmar Hansen is the Communications Manager at Circle.

Photo: KNUT ARE TORNÅS / NRK

Waiting to be filled

High and variable fuel prices have made many more cautious when it comes to filling the tank.

I’ll wait until I find a place where the prices are reasonable. Under NOK 20, I can then fill up, says Marus Hyldetoft, whom NRK met at a petrol station in Arendal.

The day before yesterday, he filled up petrol at Dramman.

There, the price must have been a kroner and a half lower than in Arendal.

Solveig Oliana Dragset, 16, got her scooter sticker in May and says she spends a lot of money on petrol.

I take the scooter back and forth from school. I spend between NOK 50 and 60 every day, he says.

Fuel price Solveig Oliana Dragset

Solveig Oliana Dragset spends most of the money she earns on petrol and scooters.

Photo: Ada Trevdal Bjoranger