New pump price reality for drivers

World concerns over Iran mean Statoil’s suggested litre price for 95 Octane unleaded currently stands at 14.98 kroner.

North Sea oil was trading at 121.50 dollars per barrel on Wednesday, the highest for nine-and-a-half months.

Forecasting petrol prices are likely to remain at approximately this level, Nordea Markets analyst Thina Saltvedt tells Aftenbladet, “High tension regarding Iran’s nuclear programme does not look as though it’s subsiding. This contributes to raising the oil price. Market worries over too little oil are also spurred by oil-producing countries such as Syria and southern Sudan having ceased their deliveries.”

She also points out world oil stocks are abnormally low due to the Libyan conflict.

“Whilst prices are increasing gradually, meaning we will have time to adjust to new levels [in Norway], the cost is beginning to get high for Europeans because the euro is weak against the dollar. This isn’t enough to break the economy, but it slows growth, something Europe really doesn’t need right now.”

Thina Saltvedt concludes, “Nevertheless, much of the high pump price in Norway is due to the considerable taxes. 15 kroner-a-litre is not a problem for us Norwegians, however.”