Finland Gas prices take another great leap

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First published in print 18.5.2000

Gas prices take another great leap forward

If you are reading this in Finland, it's all theatre. It's too late. No chance to nip out to the local Esso, Shell, SEO, or Jet station and fill the tank up before everyone else does. No chance even to join a longish queue. Pump prices went up in Finland overnight by 15-20 pennis a litre (FIM 0.15- 0.20) and shopping around isn't going to do you very much good, either, as the fuel companies were touchingly unanimous in their decision.

For example, Neste and Shell increased their recommended retail prices for 95E unleaded by FIM 0.17 to FIM 7.25. The rrp for 98E is FIM 7.40, and if you want 99-octane, you'll have to find FIM 7.50 to fill a litre bottle. Even diesel prices are now likely to break the FIM 5.00 barrier. Some filling stations jumped the gun and raised their prices already on Wednesday. Faxes on the new arrangements came in around 2pm, and by 4pm some places had already switched their (increasingly unattractive) advertising signs with the price of the day. Those that elected to play by the midnight rule found long lines of customers in the late evening.

The astronomical price of the US dollar and the recent upturn in gas prices after a brief respite have forced the increases upon us, claims a spokesman for Neste. There is currently a strong demand for gasoline, as US stocks are low and consumption is set to increase as the summer season approaches.

It's not all quite that bleak, however, as local competition still exists to encourage a few stations to cut their margins and go for volume. Matti Peitso, CEO of Neste Marketing, estimated yesterday that it would be possible to get 95E from some Neste stations for as little as FIM 6.60 a litre. That still prices it at a dollar a litre, but it's better than nothing.

Those with gas-guzzling vehicles will perhaps consider turning to the banks for a loan, as filling the 100-litre tank of your pet Cadillac will currently set you back around FIM 740 (EUR 125). If this goes on much longer, the bicycle will make a comeback.

http://www.helsinki-hs.net/today/180500-05.html

-- Martin Thompson (mthom1927@aol.com), May 19, 2000


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