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TODAY IN NORWAY

Today in Norway: A roundup of the latest news on Friday 

The government rules out a fuel discount, inflation at its highest levels since the 80s, 2,000 Flyr flights potentially disrupted and more news from Norway on Friday. 

Pictured is somebody filling up their car with petrol.
Fuel prices have risen 20 percent in Austria just since May. Photo by Dawn McDonald on Unsplash.

The government says no to fuel discounts this summer

Petrol and diesel prices will not be discounted this summer, even if the cost of fuel reaches 30 kroner per litre, Norway’s finance minister Trygve Slagsvold Vedum has said. 

However, he said that the government would look at its policy on fuel tax and duties in the autumn when putting together a budget for 2023. 

“There are no changes in fuel taxes now, but in the autumn, we will look at tax and duty measures when we make a new budget for next year,” he said. 

READ ALSO: How and where to get the cheapest fuel in Norway

Inflation continues to rise

The consumer price index (CPI) rose by 0.2 percent from April to May and 5.7 percent over the past 12 months, taking inflation to its highest level since the 1980s. 

The CPI adjusted for “core inflation” rose by 3.4 percent between May 2021 and May 2022, new figures from Statistics Norway released Friday morning have revealed

The national stats agency has said that it expects interest rates to rise ahead of Norway’s central bank, Norges Bank, schedule. 

“The interest rate must rise because unemployment is at a record low, inflation is at a record high,” Thomas Von Bracher from Statistics Norway said. 

Delays with plane delivery lead to summer disruption for Flyr

Around 2,000 bookings with budget airline Flyr face being disrupted due to the late delivery of a Boeing aircraft. 

“Dear Guest, Delays in the delivery of our new Boeing 737-8 from the Seattle plant are unfortunately causing changes to some of our flights,” the company wrote in an email to customers. 

The plane was meant to join the airline’s fleet on June 29th but will not arrive until July 26th. 

The company has told newspaper VG that up to 2,000 flights could be affected due to the delay as they had sold tickets and planned their summer schedule on having the 11th aircraft in their fleet. 

Flyr has said that it would try and offer customers whose flights may be disrupted or cancelled tickets for another flight on the same days or a refund. 

Armed forces terminate helicopter deal

The Armed Forces have announced that it will terminate its contract for the NH90 helicopter, send the aircraft back and demand a refund of five billion kroner. 

The helicopters are being sent back for several reasons. These were delays in delivery, time-consuming maintenance, and the number of errors being far higher than expected. 

The machines were initially meant to be delivered between 2005-2008, but the delivery was significantly delayed. By 2018, the Armed Forces had only received eight of the 14 helicopters ordered. 

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TODAY IN NORWAY

Today in Norway: A roundup of the latest news on Tuesday

Risk of airport strikes in Norway, house prices increase, and employers less optimistic. This and other news from Norway on Tuesday. 

Today in Norway: A roundup of the latest news on Tuesday

Risk of strikes in aviation 

Talks between the union LO Stat and the employer organisation Spekter have broken off, which means that state-owned airport operator Avinor could see staff head out on strike over wages. 

“We have come a long way, but now the Riksmekleren (national mediator) will be next. The distance is too great, and the willingness to negotiate is too little. We have experienced attacks on accumulated rights, and that agreements entered into are not followed up,” Lise Olsen from LO Stat said in a statement. 

Therefore, up to 900 employees could go on strike if mediation fails to reach an agreement. No date has been set for the mediation process. 

Norwegian employers less optimistic

Employers have their lowest expectations for the future for at least eight years, according to figures from the Norwegian Labour and Welfare Administration (NAV). 

Far fewer companies anticipate taking on more staff next year, according to an annual survey from NAV. 

Only one in ten companies was expecting the number of employees to increase. 

Companies also said that finding qualified candidates had become less of a problem in 2024 than it had been previously. 

The shortage of workers in Norway has fallen from around 70,000 to 43,600. 

The state makes offer to farmers 

The state has offered 2.62 billion kroner in the agricultural settlement, which is an increase in income of around 70,000 kroner per man year. However, it is still well short of farmers’ demands of 3.9 billion kroner. 

“The state is delivering a good offer today that follows up on the Storting (Norwegian parliament) report on increased self-sufficiency and income escalation. The offer shows that the escalation plan is being followed, and it is planned to close a third of the income gap already in this year’s offer,” Viil Søyland, chief negotiator for the state, said. 

Due to a demanding situation for farmers, the government needed to do more to plug an income gap, according to Bjørn Gimming, head of the farmers’ union and leading negotiations for the agricultural sector. 

House prices in Norway rose in April 

House prices rose by 1.2 percent last month, and the average price of a home was 4.7 million kroner at the end of last month, according to figures from Real Estate Norway. 

In April, 9,942 homes were sold in Norway, a 40 percent increase from the previous year. 

“A large number of homes were both sold and advertised in April, and we had a real spring flood in the housing market in April,” Henning Lauridsen, CEO of Real Estate Norway, said. 

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