Petrol will become up to 1 kroner ($0.11/£0.09/Eu0.10) more next year

Gas stationGas station. Photo Norway Today Media

In 2017, fuel prices are pegged to increase by 34 øre and diesel by 55 øre, but the increase might be closer to 1 kroner, according to Oil Analyst (Oljeanalytiker).

From January 1st, motorists will find out the economic consequences of budget-compromise.

Secretary General of the interested organisation, Norwegian Petroleum Institute, Inger-Lise Nøstvik, said there will be a triple increase in charges, including increases in road tax (veibruksavgift), CO2 tax and VAT. Because of this, the petrol price is estimated to increase by 34 øre with moms, and diesel by 55 øre, reported E24.

Oil analyst Thina Saltvedt at Nordea Markets, said there are four variables that come into play for fuel prices.

Firstly, oil prices are expected to rise, then refining margins also rise. Saltvedt explained that this happens when oil demand increases.

Thirdly, this coverts into kroner, and finally there is local price competition, where pump prices may vary by several kroner in the same area.

‘Because of all the variables, it is difficult to say exactly how much they will rise, but I expect they will rise certainly closer to 1 kroner,’ Saltvedt told E24.

 

Source: NTB scanpix / Norway Today

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