Diesel prices in Finland return to levels seen at the start of Russia’s war against Ukraine
In Finland, the average price of a liter of diesel fuel was €2.43 the previous day, while A95 gasoline cost €2.28. The price of diesel has returned to the level seen at the start of Russia’s full-scale war against Ukraine in 2022, YLE News reports.
Brent rises above $100 again
This week, the price of a barrel of Brent crude rose above $100 again. Prices are increasing amid prolonged hostilities in the Middle East. At the same time, gasoline and diesel have recently been rising in price faster than crude oil.
Hanna Kalenoja, the chief transport expert at the Central Chamber of Commerce of Finland, links this to the prolonged crisis in the Middle East: as a result, some oil refineries are not operating, while global fuel inventories have declined. In her assessment, Ukraine’s strikes on oil extraction facilities in the aggressor state of Russia have turned Russia into a net importer of diesel, further reducing its supply.
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No rapid price decline expected
Kalenoja noted that there is no fuel shortage, but low inventory levels are affecting prices. The situation with diesel and light heating oil is of particular concern, she said, as demand for them is increasing with the approach of the heating season in Europe and the United States.
Although long-term futures point to a downward trend, the expert does not expect rapid relief for consumers. In her view, prices are unlikely to begin declining without normal supplies of petroleum products from the Persian Gulf reaching the market. She also explained that Finland’s highest diesel price in Europe is largely linked to comparatively high fuel taxes.
In 2022, when the price of gasoline exceeded €2.5 per liter, gasoline and diesel consumption in Finland fell by around 6%. According to Kalenoja, high fuel prices also increased consumer interest in electric vehicles.
