Why is petrol so cheap now? A reason emerges from the background that “surprised even the market” – the economy

25 cents from the price of a liter disappeared from the gas station like ashes in the air. An expert explains the phenomenon.

Fuel A surprising amount of euro cents evaporated from the pump price earlier in the year.

A proper Euro refueler will find the most common grade, i.e. 95-octane petrol, costs around 1.6 euros per litre. Last year “ysvitonen” An average of 1.96 euros was paid per litre.

How is this possible? HS put together four factors that explain the decline.

1. Crude oil price.

“Sec The most important explanation is the improvement in the price of crude oil”, summarizes the transport expert Hannah Kalenoja From Vehicle Information Center.

Oil prices have fallen. The industry's most watched gauge was the price of a barrel of Brent crude, which was around $78 on Friday morning. At the end of September, the price dropped to a hundred dollars.

“It was a surprise to the market because in the fall there was a new geopolitical crisis between Israel and Hamas. At the time, it was thought that being close to oil producing countries would have price effects.”

Shipping is affected by Yemen's Houthi rebels Began attacking cargo ships bound for Israel On the Red Sea. Ten percent of oil exported by sea passes through the narrow channel, and tanker traffic continues without significant disruption.

2. European gas reserves

“Oil Fuel prices are stabilized because of good gas reserves in Europe – unlike when we started the previous winter, the situation was very uncertain,” says Kalenoja.

Central Europe is heavily dependent on gas, and Russia's war in Ukraine disrupted gas grids last year. By the end of autumn, the Old Continent was well prepared for winter. Gas prices have fallen, which is calming the energy market.

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3. America's mild winters

In Finland Sharp in the cold, but World's largest oil user The U.S. is experiencing a milder-than-expected winter so far.

of the Federation Noah, responsible for meteorological and marine research, estimates, the northern parts of the country will experience warmer than usual winters. Although there are storms in most of the country No snow on Christmas.

In these conditions, for example, heating oil is not so necessary. In the United States, about the end use of oil 67 percent goes to transportation.

4. Domestic Proceedings

Excise duty on fuel was reduced earlier this year. The change reduces the VAT-taxed petrol price by 4.4 cents and the diesel equivalent by 4.9 cents.

Also, the government has frozen the increase in fuel supply credit for this year. First, the liability would have almost doubled, raising the pump price by 15 paise per litre.

Obligation to supply This means that industrial chains must supply renewable, more environmentally friendly fuels to the market. Background emission targets. The production cost of such products is high and hence this is reflected in pump prices.

According to Kalenoja, the tax cut is easy to visualize in the pump price, but not the cent impact of the duty: “The pricing system is very complex.”

However, the global drop in oil prices played a major role in the twenty cent drop at the pump. From the point of view of the ruling parties, this is coincidentally timely as domestic decisions have now come into effect.

For example, Finance Minister Rika Burra (ps) wrote on news service X on Thursday, “Yes, there is affordable bush.”

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Fuel in Sweden The price really dropped With state results, because the country reduced taxes and reduced the distribution obligation to a minimum. According to Kalenoja, Sweden must decide how to meet future emissions targets.

Finns They were shocked to find it had arrived on a day's notice from the weekend Electricity price hike. The oil market is very stable, so the pump price doesn't go up or down overnight.

When the price of a barrel fell, the outbreak of epidemics, and the Russian attack on Ukraine, in turn, rose to record levels.

“Electricity is affected by local weather, oil is more by global crises,” summarizes Kalenoja.

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