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Why does petrol cost more in Finland than elsewhere in the Nordics?

Prices can vary by as much as 60 cents per litre.

A woman paying at a self-service petrol pump.
Pictured here: Finnish motorists on 8 July refuel in Övertorneå, Sweden, where lower fuel prices have drawn drivers across the border. Image: Samuli Holopainen / Yle
  • Yle News

Gasoline prices in Sweden and Norway are significantly lower than in Finland, by as much as 60 cents per litre. The reason is straightforward: tax reductions.

Petrol prices are now high as crude oil prices have climbed since Monday, reaching their highest level since mid-June.

The European market price for petrol is now 44 percent higher than it was in the spring.

Motorists in Sweden can fill up their cars at prices around €0.60 per litre less than in Finland. Even Norway, a country known for high prices, currently offers cheaper petrol than Finland.

"Sweden has introduced fuel tax cuts twice, while Norway has done it once," Timo Jokinen of Finnish energy company ST1 told Yle.

While tax cuts could ease the burden on consumers, Jokinen said he was cautious about using them as a solution.

"I think it creates a somewhat misleading impression that the state can always offset every market disruption," he said.

Finland is currently experiencing a time of high demand, which is also putting upward pressure on fuel prices.

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