In oil-rich Norway, petrol prices most expensive in Europe

[Elano]

OSLO (AFP) - In Norway, many motorists are up in arms over why they have to pay the highest petrol (gasoline) prices in Europe when the country is the world's fifth-largest oil exporter and a recent tax hike has done little to cool tempers.

"It is really strange: we have lots of oil and we're a rich country. Why do we have to pay so much?" asks Per-Arne Skjerpingstad, a 38-year-old hospital porter as he fills up the tank of his Peugeot 307 at an Oslo gas station for 750 kroner (94 euros, 148 dollars).

Diesel costs 14.23 kroner (1.78 euros, 2.82 dollars) a litre (quarter gallon) and 95 unleaded 13.84 kroner, putting it at the top of the European league, EU figures show.

And while many countries are discussing how to soften the blow of skyrocketing oil prices on consumers, Norway on July 1 increased its already heavy tax take by 0.05 kroner per litre on petrol and 0.10 kroner (0.1 euro cent, 0.2 dollar cent) on diesel.

Seven out of 10 Norwegians oppose the tax increase, according to a July poll by the daily VG.

"It's not the way to go. In a country like Norway, people need to have cars. I bought this car because I'm going to be a father soon," Skjerpingstad said.

Critics argue it is meaningless to increase taxation when oil prices have risen so much in the past months. And as the new tax increase is low, it won't significantly change drivers' behaviour.

Instead "we should lower tax because we are so fortunate to be an oil exporter," said Siv Jensen, the leader of the far-right Progress Party, the leading opposition group in Norway.

"We should give the money back to the people so they can enjoy it," she told AFP.

The tax increase is part of a wider government strategy to fight climate change by pushing Norwegians to leave their car at home.

"At a time when climate change is beginning to seriously impact the planet, and when Norway's carbon dioxide emissions are increasing, we politicians must take steps to meet these challenges," Finance Minister Kristin Halvorsen said.

The tax was agreed by all political parties, apart from the Progress Party, as part of the country's overall climate change policy.

But now supporters of the centre-left coalition government fear the tax increase will cost them dearly in the next elections, in September 2009.

"It's a very unwise political decision. The only thing it will accomplish is that the Progress Party will get even more votes," Labour MP Karita Bekkemellem told the daily VG in June.

A third of the population expect fuel prices to be the most important issue in the polls, according to a survey in Aftenposten, Norway's paper of reference.

Speculation has been rife over whether the far-right could come to power for the first time in the next election. Even Labour Prime Minister Jens Stoltenberg has acknowledged that the Progress Party could get into government.

Those living in rural and remote areas are particularly incensed about the tax increase as they are more dependent on cars than city dwellers who have access to public transport.

"This is a serious issue with many people I have spoken to and met in my region, (rural) Moere and Romsdal. Much more serious than for those who live in a small circle in Oslo and Gruenerloekka (a fashionable area in the capital) think," Bekkemellem told VG.

At the same time, there are those who think the protests are overdone since Norway is a rich country and should be able to afford high fuel prices in the service of a good cause.

Norwegian salaries are among the highest in the world and the government estimates an average industry worker here can buy twice as much petrol as his Spanish counterpart after working an hour.

"Of course petrol is expensive but it's okay. The standard of living is good here and salaries are high," said Stine Nore, a 28-year-old logistics manager as she filled up her black BMW estate.

"There have to be incentives for people to drive less. Driving is a luxury. People should only drive a car when it really is necessary," she told AFP.

[K.Dub]

Re: In oil-rich Norway, petrol prices most expensive in Europe

I know, it sucks. Kinda glad I sold my car.

[Elano]

how the fuck is possible ?

[K.Dub]

how the fuck is possible ?

They don't want us to use our cars..

Fuck, we're one of (if not the) richest countries (country) in the World and the prices are still record high...

[Don Jacob]

i know here where i live there's a huge oil field right over the bluffs about two blocks from my house, and we're rich in oil as well. But, just like norway we're paying more than most places in California......It's cheaper to fill up in LA, than it is in Bakersfield.

[Sparegeez]

It's cheaper to fill up in LA, than it is in Bakersfield.

Whaaat?! That's crazy, I thought big cities were the ones that always had the highest gas prices.

[Sikotic™]

HA HA!

[Don Jacob]

It's cheaper to fill up in LA, than it is in Bakersfield.

Whaaat?! That's crazy, I thought big cities were the ones that always had the highest gas prices.

i guess not

[Don Jacob]

poor norway

1st the gas
now this ass

<a href="http://www.youtube.com/v/oQJqZFUell8&amp;hl=en&amp;fs=1" target="_blank" class="new_win">http://www.youtube.com/v/oQJqZFUell8&amp;hl=en&amp;fs=1</a>

[K.Dub]

^he's insane

[Jome]

Whaaat?! That's crazy, I thought big cities were the ones that always had the highest gas prices.

i guess not

Big cities = plenty gas stations = more competition = lower prices.

Somehow, this is true for the gas market, but it's not always correct in other industries.

Also, the location of the individual gas station is also a major factor, wack locations needs to have lower prices to attract customers that usually would just drive by.

[Sparegeez]

Whaaat?! That's crazy, I thought big cities were the ones that always had the highest gas prices.

i guess not

Big cities = plenty gas stations = more competition = lower prices.

Somehow, this is true for the gas market, but it's not always correct in other industries.

Also, the location of the individual gas station is also a major factor, wack locations needs to have lower prices to attract customers that usually would just drive by.

Nah it's not like that over here. I live in San Leandro, just 5 blocks from the border of Oakland. The gas prices in Oakland are at least 10-15 cents higher than in San Leandro. Don't even get me started on SF...

My point is the smaller the city, the cheaper the gas is. At least over here in the bay area

[Jome]

Well, those places don't tell me anything, but I will say this:

Smaller places can some times be cheaper if the competition is fierce. A little dump of a village having 3-4 gas stations = lower prices.
But if there's little to no competition, it's likely to be more expensive than the big cities.. competition (and location) is what sets the price, in nearly all cases.

Also, in big cities where there's 10 gas stations within a 5 min drive, it's likely to be cheap, due to the fierce competition.
But it's also possible that a station in a (more remote) part of a city, which might only have 1 gas station, and a 10-15 drive to the next, is expensive, because there's no real natural competition.. but some times there might be other reasons..

Btw, are you trying to give people an epilepsy seizure with that sig.. ?

[Sparegeez]

Well, those places don't tell me anything, but I will say this:

Smaller places can some times be cheaper if the competition is fierce. A little dump of a village having 3-4 gas stations = lower prices.
But if there's little to no competition, it's likely to be more expensive than the big cities.. competition (and location) is what sets the price, in nearly all cases.

Also, in big cities where there's 10 gas stations within a 5 min drive, it's likely to be cheap, due to the fierce competition.
But it's also possible that a station in a (more remote) part of a city, which might only have 1 gas station, and a 10-15 drive to the next, is expensive, because there's no real natural competition.. but some times there might be other reasons..

Btw, are you trying to give people an epilepsy seizure with that sig.. ?

I understand the concept of competition. It's just that I don't understand how 5 blocks west of my house(Oakland) the gas is 10-15 cents more expensive than 5 blocks east going east(San Leandro).

And about my sig, if people are going to diss me they should have a good reason for doing so. Now I won't be wondering why my karma keeps going down, since chances are it's because of my sig. Oh and also because The Joker is the Shit