Fuel prices are historically high. On the last day of May, the price of petrol was NOK 27 per liter. It was the highest price ever in Norway. But already on Monday this week, the record was broken, when the price reached 28 kroner. And the experts predict that this is something we must get used to. We have to expect prices up to 40 kroner a liter. But who benefits from the high petrol prices? The historically high fuel price on Monday can be divided as follows, according to Per Magnus Nysveen, head of analysis at Rystad Energy. Einar Gotaas, head of taxes and biofuels at Drivkraft Norge, says that the pump price can be divided into three components: Taxes International purchase price The companies’ own costs and margin Taxes have historically accounted for 60 per cent of the price and international purchase price for 30 per cent. The last margin of 10 percent is what the dealers are left with. – Now the purchase price is very high. It has taken a large part of the pump price, says Gotaas. Thus, the figures are reversed: Fees: 40-45 percent of the price. International price: 40–45 percent of the price. The margin to the companies: 10–20 per cent of the price. The graph shows that the price of petrol varies with the price of raw materials. The horizontal axis shows the price of North Sea oil in dollars. The vertical shows what the price of petrol in kroner per liter goes to. The petrol stations earn less It may therefore seem that things are a little more hectic for the petrol station owners now than before. But on Hamarøy in Nordland, petrol station owner Øyvind Johansen is doing everything he can to keep petrol prices down. This spring, he has sometimes been able to sell fuel for 20 kroner a liter. – I do not have the expenses that my competitors have. It’s my station and my pumps, and it’s just fuel and operation I have to take money on. Johansen believes it is an advantage not to be part of a larger chain now. Johansen is the only employee at the petrol station, and also owns a grocery store next door. Therefore, he gets some extra income when those who refuel also buy food. And he gets the support of the experts. – There is a lot of good money in selling petrol at a tiny petrol station, says Nysveen, chief analyst for Rystad Energy. The distribution surcharge is around 2 kroner, but when prices are higher there is more to take away. Then it is possible for new competitors to enter the market. – If you have a petrol station without employees, you can push down the price by at least a penny to have a simpler point of sale, says Nysveen. But he adds that it will be difficult to push it any more especially without eventually losing. The refineries earn a lot Even for the small petrol station on Hamarøy, prices are rising. Now the price of diesel is 22.30 kroner, petrol costs a little over 24 kroner. It is in fact much more profitable to make the fuel. – What has changed the most recently is the international petrol prices in relation to crude oil prices. Petrol is now relatively much more expensive than crude oil compared to before, says Nysveen. – The refineries make a lot of money from refining because petrol is very expensive. Although crude oil is expensive, gasoline is even more expensive. The state earns more Those who really make the big money now are those who produce and sell oil. – It is Norway, the USA and Saudi Arabia. Saudi Arabia earns the most, but Russia and Norway also earn a lot, says Nysveen in Rystad Energy. He explains that the Norwegian state earns 90 percent of the profit from oil production. In addition, they earn 40 percent on taxes for every liter that is filled. This is because the state takes both CO₂ tax and road use tax on the fuel. Then VAT is added on this again. The state previously had a share of 60 percent. The share is now between 40 and 45 percent. Nevertheless, the State now earns more in kroner according to the head of department at Drivkraft Norge. – VAT helps to raise revenue for the state when the price of petrol goes up. Taxes have been constant throughout the fuel crisis, while pump prices have risen as a result of international fuel prices. – It is the state that makes money, and we are the State, says Nysveen in Rystad Energy. Many believe that taxes must go down When crude oil prices and international petrol prices are as high as they are now, it hurts many people that 40 per cent goes to the state. Several county stops now require lower fuel prices. Norstat conducted a survey on behalf of NAF in March. It emerged that 1.2 million Norwegian households struggled with high fuel prices. Ingunn Handagard, communications adviser at NAF, says they had hoped for a tax cut in the revised state budget. Photo: NAF Since the same month last year, the price of petrol has increased by 34 percent. The price of diesel has increased by 41 percent. Therefore, NAF has presented five measures that they believe can reduce the pressure on the finances of people who use a car in everyday life. NAF’s proposal to make it cheaper to use the car Cut in the tax on fuel Cut in the motor insurance tax on all cars. Cut the re-registration fee for electric cars to make it easier to replace the petrol car. Cuts in tolls in the scheme the government can already use for this. A support scheme for households based on the model from Sweden, where they provide cash support to the owners of petrol and diesel cars. – Cutting the tax on fuel is the most important move, says Ingunn Handagard in NAF. Director of logistics and transport at NHO, Are Kjensli, says that he expects that fuel prices will eventually exceed prices for goods and shipping. Photo: NHO Logistics and transport Also director of logistics and transport in NHO, Are Kjensli, has now asked the government to take action. – It is clear that it is stressful with these high fuel prices. We have already seen that there have been bankruptcies. This is a big challenge. – Should not cut fees But the chief analyst at Rystad Energy does not agree. He will not advise the authorities to do much with the tax level. – I think it is important now to reduce fuel consumption a bit. If you do that, prices will eventually go down, says Nysveen. Per Magnus Nysveen, head of analysis at Rystad Energy, believes that the government is doing us a disservice if we cut taxes now. Photo: Jon Skille Amundsen The reason why prices are high now is that there is too high demand in relation to supply, the head of analysis points out. – If we lower the fees now, the pressure on prices will be all the higher over the summer. – What kind of consequences will it have to lower the fees? – Every single wallet comes out of it positively, but if the whole world were to think that way, we would have a big problem in the oil market over the summer. He believes this is an opportunity for the State to make green relief for the private wallets. Therefore, he rather proposes subsidies on solar panels or heat pumps. – The higher the oil prices, the faster the green shift goes.
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The state benefits so much from the fact that petrol prices are historically high – news Nordland
