Finland Times

Crude oil price has a relatively small share in the final price of the product, said Finnish Petroleum and Bio-fuels Association Deputy Managing Director Pekka Huttul when asked why the drop in crude oil price has not benefited motorists refuelling at local filling stations.

According to Huttula, the country’s national fuel taxation is high and the exchange rate relations also have an impact.

The US dollar has strengthened in the recent past and that is felt in Europe, since oil trading is conducted in dollars.

The price of oil has also been influenced by the fact that the demand for oil in the world markets had been remarkably high at the beginning of the year.

When asked about the price formation of the fuel sold at Finnish gas stations and how they come about, Huttula said most of it comes from taxation. Then, there are the raw materials, processing, storage and transportation as well as marginal trading.

Huttula was also asked whether it is possible to have a supplier who for some reason would be able to sell fuel at a much cheaper rate than others. In reply to this question, Huttula said he does not believe this could happen, since the costs are considerably the same and everyone tries to optimise their operations. For this reason, according to Huttula, it is hard to imagine that someone would be able to clearly stand out.

Huttula did not want to speculate on the price of oil, when asked whether the price could be affected since summer holidays are coming to an end. “I would not speculate, but it may perhaps slightly reduce the price.”

In any case, the above-stated market factors are more significant from the price point of view, added Huttula.