Why is gasoline cheap in Sweden, but significantly more expensive in Finland? This is how St1, Neste and ABC justify the price difference

Contacted delivery Tommy was amazed after crossing the national border in the bottom of the Pärämere. The reason for the surprise was the price of fuel, which dropped by about 30 cents per liter when the car was driven over Tornionjoki.

Tommy had first driven from Helsinki to Tornio and finally refueled only after crossing the border to Haaparanta.

“95 costs 1.57 euros per liter. Why is there a difference of almost 30 cents in Finland?” Tommy wondered on Wednesday.

When fuel price information from online services was examined on Thursday, even greater differences were noticed between Finland and Sweden.

In Finland, the 95E, which Tommy also refueled, cost 1.86 euros at its lowest price. In Sweden, you could get the same substance for 14.59 kroner, or 1.37 euros. According to this comparison, the difference was almost 50 cents per liter.

When looking at the national averages, the difference remains more or less the same. In Finland, 95E cost an average of just under two euros per liter, while the average in Sweden remained at the level of 1.55 euros.

Therefore, the cheap gasoline that Tommy was surprised by in northern Sweden on Wednesday was slightly more expensive than the average for the whole country examined on Thursday. Price information is given in Finland, for example Polttoaine.net and in Sweden Bensinpriskollen.se.

On a Finnish station

By the way, Tommy refueled at the St1 station. The chain is Finnish and expanded significantly during the last year, when all Shells in Finland, Sweden and Norway were converted to St1 stations after the license agreement ended.

Therefore, it is appropriate to specifically ask St1’s view on why fuel is clearly more affordable on the Swedish side. Gives the answer Simo Briskwhose title is sales & operations lead retail Finland.

“There are big differences in the Finnish and Swedish markets in terms of energy policy, so it is difficult to compare them. By this we mean, for example, energy taxation and the level of the distribution obligation,” says Brisk and continues:

“They create the most significant difference between the countries. We will not comment on the pricing of individual stations.”

Liquid vision

St1’s management has previously stated that local competition has a significant impact on fuel prices within the small margin of maneuver that remains after the so-called mandatory expenditure items.

Brisk did not comment on this point of view at all. In contrast, the competing energy company Neste brought this point up in its response.

“Local competition is one factor affecting fuel pump prices, together with world events, market prices (raw materials and final products), exchange rates and taxation”, Neste’s communication replies.

Later, the company wanted to supplement its answer with the fact that also official fees and differences in distribution obligations affect price differences between countries.

That’s how ABC answers

Regarding the ABC chain that sells fuels, the answer was given by the manager responsible for transport energies Tiina Viksten MANY:lta.

– The price of fuel is largely controlled by the continuous development of the global market situation, seasonal fluctuations and fluctuating exchange rates, which the operators of the fuel trade practically cannot influence, Viksten says.

In addition, according to him, fuel price levels vary by region at different times depending on the current competitive situation, as in the market economy in general.

– Locally, the competitive situation affecting the price level of the stations can be different even between two different intersection areas. One of the special features of the industry is that prices can change several times even within one day. S group’s 19 regional cooperatives are responsible for fuel pricing at their own stations independently, says Viksten.

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