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How long will the decrease in fuel prices in Norway last?

Fuel prices have recently dropped below 20 kroner per litre in several places in Norway. Here's why.

Circle K
In the last week, fuel prices have decreased throughout Norway. Photo by Kristers Kairis / Unsplash

In the last week, fuel prices have decreased across Norway. Motorists who have become used to 25 kroner per litre have had the opportunity to fill up their tanks for 16-17 kroner a litre in several cities, Norwegian Broadcasting (NRK) reports.

There is no widespread consensus on why the prices are going down, and energy analysts and industry experts have pointed to both domestic and international factors as potential drivers of the price drop. 

Why are fuel prices dropping?

According to Circle K, the lower prices are a result of local price wars and low purchase prices.

“We are experiencing strong competition in several places in Norway now. The local price wars push prices down significantly,” Kjetil Foyn at Circle K told NRK.

Low purchase prices (that is, the prices that companies pay for fuel in the market) also contribute to favourable fuel prices for end consumers.

“Our purchase price has fallen a lot for both petrol and diesel in the last week,” Foyn added.

Coronavirus effect?

Nordea energy analyst Thina Saltvedt believes the most important reason for the decline in fuel prices is the resurgence of the coronavirus pandemic in China.

According to her, China accounts for 16 percent of the world’s oil consumption.

“Now, the country is closed to a greater extent, and the consumption of oil is down. Another reason is a slowdown in activity in the global economy due to the rise in interest rates and the threat of inflation,” she explained.

Saltvedt thinks it is too early to say whether the decline in petrol and diesel prices will last due to the volatility in global markets and the uncertain security situation.

“(Russia) is an important player in the oil market and thus has a major influence on access to oil and oil products,” Saltvedt added.

Prices might rise soon

According to the analyst, the European Union (EU) will stop buying Russian oil that is transported by ship from December 1st, which might also affect fuel prices.

“That means that access will be reduced. As a result, prices may rise again…

“If oil prices continue to fall as much as we have seen so far in November, the Organization of the Petroleum Exporting Countries (OPEC) will cut their production so that prices rise again. We saw that after the sharp drop in fuel prices during the coronavirus crisis,” Saltvedt noted.

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COST OF LIVING

Cost of living: What are Norway’s best comparison sites for saving cash

With inflation pushing up the prices of most consumer products, people living in Norway are increasingly resorting to using comparison sites to make sure they get good deals – or at least that they don't get ripped off.

Cost of living: What are Norway's best comparison sites for saving cash

The cost of living crisis is exerting significant pressure on the personal finances of most Norwegian households.

According to a recent survey carried out by Norstat for the Boston Consulting Group’s (BCG) Oslo office, 70 percent of Norwegians are worried about their personal finances.

Furthermore, 77 percent say they will likely be able to afford to spend even less in the future as prices continue to rise.

The inflationary pressure in Norway has made comparison sites, which help users compare deals and save cash, more popular than ever.

In this article, we will go through some of the best comparison sites you should use in Norway if you want to save money.

Prisjakt

The price comparison site prisjakt.no is likely the most popular – and biggest – site of this sort in Norway.

Prisjakt.no enables consumers to compare product and service prices between a number of online stores so that they know they’re not paying more than they need to.

The site shows the lowest prices at the top of its product pages, as it is not possible for stores to pay to get a better position on Prisjakt – which is a nice consumer-oriented guarantee.

Along with price comparisons, you can also find other helpful information, including shipping costs and stock status, the price history of products, and reviews.

You can also get notified when the price is reduced or when a store receives a new product in stock, which can be a great timesaver.

Things to look out for: When it comes to the downsides, some consumers complain that the company is too strict when it comes to managing store reviews – especially critical ones.

Prisguiden

While Prisjakt is often considered the top comparison site in Norway, Prisguiden is a close second and is generally considered its leading competitor.

This price comparison site has been helping Norwegian consumers find great offers for more than 20 years. They cover around 700 stores and have 9 million products from 1,200 product categories on the site.

Prisguiden offers standard options such as price alerts, product price history, and a comprehensive page with the top deals of the day and week.

Things to look out for: Some users of the site claim that the number of stores included in the overview does not enable consumers to find the best offers, while others believe the search results include too many foreign stores and suspicious sites.

Kelkoo

Founded in 2000, Kelkoo is a shopping portal that helps users search through millions of products from hundreds of online stores in order to reach a more informed purchase decision.

The portal checks product data and prices from the online stores it covers several times a day and updates its result pages.

It offers thousands of trusted brands such as Apple, Sony, Philips, Microsoft, Nike, Adidas, Bosch, and Miele, as well as Norwegian household names such as Elkjøp.no, XXL.no, G-PORT / G-MAX.no, Jernia.no, and Megaflis.no.

Things to look out for: Note that the search results are not too extensive at times, and it might not be apparent which store is based in Norway and which isn’t at first glance (you’ll need to visit the pages Kelkoo.no recommends in the search results to find out).

Finansportalen

If you want to compare banking, financial, and insurance services, then Finansportalen.no is the place for you.

Finansportalen is a service offered by the Norwegian Consumer Council, which aims to give consumers the power and option to make good choices in the financial services market.

The portal offers a number of digital tools that help consumers compare banking, pension, insurance, and investment products.

Mattilbud

Sometimes shopping around is the only surefire way to save some cash. However, with all the legwork involved, it may not feel like it’s worth it.

Luckily, Norway’s Mattilbud app lets you collate and compare all the offers currently available in all of Norway’s major supermarkets.

The app shows you all the offers available in the supermarkets in your local area. Mattilbud includes prices and offers from Meny, Joker, REMA 1000, Bunnpris, Matkroken, Kiwi, Spar, Coop Prix, Coop Mega, Coop Marked, Obs, Extra and Europris.

Strømpris

Strømpris.no is another free service offered by the Norwegian Consumer Council. The site makes comparing prices and finding better electricity deals easier.

The comparison service is based on mandatory reporting from the power companies based on Norwegian regulations on reporting for power supply agreements.

That means that the companies are obliged to report their agreements to Strømpris.no by themselves.

FINN

While it’s not exactly a price comparison site, FINN.no is Norway’s biggest online marketplace. It has been on the market for roughly 23 years, and it is one of the most popular websites in the country.

According to the company’s website, on average, Norwegian spends an average of 30 hours on the site every year.

The site has a huge second-hand market, and on a typical day, there are around 300,000 listings and ads available on Finn.no at any given time. That means you’ll often find good deals on FINN – regardless of whether you are buying or selling.

Things to look out for: As is the case with most online marketplace platforms, there are also shady individuals using the site. Exercise common sense and be cautious before you commit to buying or selling anything on FINN. If something sounds too good to be true, it probably is.

If you’re interested in second-hand deals, you might want to read The Local’s guide on how to buy second-hand and save money in Norway

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