The case in summary: Alf and Kate Vinnes from Bergen save four to five kroner per liter by filling up at the cabin instead of in town. The Norwegian Competition Authority has noted that petrol prices are often lower in areas outside the cities. One possible explanation is that the small fuel chains, which are often located outside the cities, have a different price pattern than the large chains. The prices of fuel can vary greatly, both during a week and from city to city. The difference can be up to six kroner per litre. The Norwegian Competition Authority encourages people to monitor prices locally, in order to contribute to stronger competition and lower prices in the long term. The summary is made by an AI service from OpenAi. The content is quality assured by news’s journalists before publication. Alf and Kate Vinnes prefer to fill up with gas when they are at the cabin in Strandvik in Bjørnafjorden, just over an hour from the center of Bergen. That saves them four or five kroner per litre, the couple have calculated. – I randomly walked across a corridor to see what they charged for a liter here, Alf said. – And the side has filled me here, Kate interjected. Alf and Kate Vinnes save the krone by letting the pump go to the village. Photo: Martin Værum Anda / news It is not the greatest idea for the hybrid car of the married couple Vinnes, but this time they still saved over forty kroner. – That should not be overlooked, says Alf. They save money on a trend that the Norwegian Competition Authority has noticed. – We see that there are tendencies for competition to be weaker than one would expect in many cities, and that there are lower prices in nearby areas, says senior adviser at the Norwegian Competition Authority Stig Torje Abdomen. It is no coincidence that it is in the cottage paradise of Strandvik that the Vinnes couple have found their favorite pump. The couple usually live in Bergen, just over an hour by car from Strandvik. The same afternoon they filled the tank in Strandvik, a liter of petrol cost NOK 25.41 station near the center of Bergen. A half-hour drive towards Strandvik, in Osøyro, the prices had dropped by just over one kroner a litre. A ferry ride further from the city saved almost five kroner a liter compared to home in Bergen. Eleven liters later, they have a full tank , and almost fifty kroner extra to treat yourself to something good at the convenience store. Not the same pattern Bjugn in the Competition Authority believes that a possible explanation for the variation in petrol prices is the small fuel chains that typically operate outside the cities. Senior adviser Stig Torje Bjugn in the Norwegian Competition Authority. Photo: Martin Værum Anda / news – One usually expects that there is stronger competition and lower prices where there are the most players, i.e. in the cities, he says. But when it comes to fuel, the players are less inclined to lower the price in many cities, because it is so easy to see what the others charge for the litre, Bjugn can tell. But the smaller chains in the districts do not follow the same price pattern as the big ones, and have a lower and more stable price. – Then they contribute to stronger competition locally, says Bjugn. One of several petrol stations near the municipal center Osøyro in Bjørnafjorden in Vestland had a petrol price of almost NOK 25. The stations in the vicinity had almost the same prices as this one. Photo: Martin Værum Anda / news Up to six kroner cheaper Fuel prices fluctuate a lot during a week, and vary from city to city. Bjugn says that the prices can also vary from station to station, even if they belong to the same chain. It may seem that the countryside is better than the city when filling the tank. Photo: Martin Værum Anda / news – The big chains raise the prices at all stations once or twice a week, to roughly the same level, before they are adapted to the local competition. This means that two stations from the same chain can get different prices, depending on what the prices are at the other stations in the vicinity. The difference can be up to six kroner a litre. And the big chains are cheaper in the districts. Possibly to be able to compete with the small players in the vicinity, the Competition Authority believes. Here from Venjaneset, near Strandvik in Bjørnafjorden in Vestland. Photo: Martin Værum Anda / news It shows that the big chains can make a big profit where the competition is weaker, he believes. – The fact that the smaller players can offer lower prices and still survive in the market indicates just that. Bjugn does not refer to specific chains, but makes a general statement about the players in the market. Confirms that prices vary news has contacted five of the major players in the fuel market. Arild Buen, who is regional manager for Rogaland, Vestland, Møre and Romsdal, and Trøndelag in YX answers, despite holiday time. – On a general basis, our stations must be competitive in their local market. This can lead to differences in price, he writes in a text message. St1 is one of two who have answered the question. Since 2015, they have owned and operated Norwegian Shell stations. Communications manager Lillian Aasheim confirms that the prices can vary: – In addition to variables for costs, taxes and fees, the fuel prices at the individual stations are based on the local competitive situation. Communications manager in St1 Lillian Aasheim. Photo: St1 Norway Ho says customers are concerned about fuel prices, and that the focus of St1 is to offer competitive prices across the country. – The market price varies across the country, and therefore there is not a common national price for the mast at all our Shell stations. Out of consideration for the competition, she does not wish to elaborate on their price strategies, but emphasizes that the industry is closely monitored by the Norwegian Competition Authority. – Of course, we operate in line with legislation and guidelines for healthy and good competition. Price consultation The senior adviser in the Norwegian Competition Authority encourages people to keep an eye on how prices are developing locally, and get an impression of what the high and low prices are where they live. – We believe that the competition in the fuel market is not as good as it could be, and that there are some large players who do not challenge each other as well as they could, says Bjugn. Not only is it good for your own wallet, it can also be a form of bargain hunting, he says. – If enough people are aware of the price, it can contribute to stronger competition and lower prices in the long term. And if you are lucky enough to have smaller players in your local area who keep a relatively low price, they can contribute to lower prices locally. Published 17.07.2024, at 15.48
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The liter price of fuel can be up to six kroner cheaper in the countryside – news Vestland
