Why gasoline in Finland remains high?

travelfish · Post by **travelfish** » Thu Sep 18, 2008 1:08 pm

The raw oil has reduced from 147 to 92$, but why the price at Finland still remains so high? Doesn't the price fluctuate with the international market? I am so missing previous time

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Karhunkoski · Post by **Karhunkoski** » Thu Sep 18, 2008 6:41 pm

If the tax proportion of fuel-pump price is large, any change in actual "raw oil" price has little effect.

e.g. If tax on the fuel is 70%, 30% is left. Of that 30% there are many other costs included in this figure, storage, distribution, fuel station overheads, wages, etc. The actual "raw oil" is a very small part. So when "raw oil" prices come down, the price at the pump comes down, but the other elements of the price don't, so the effect is only a few cents.

catfish78 · Post by **catfish78** » Thu Sep 18, 2008 7:32 pm

Upphew · Post by **Upphew** » Fri Sep 19, 2008 11:24 am

Karhunkoski wrote:If the tax proportion of fuel-pump price is large, any change in actual "raw oil" price has little effect.

If oil would come out of earth by itself, go to the refinery, transform to gas and given away for "free" to consumers... one would pay 0,62e/l taxes (not including vat): http://www.tulli.fi/fi/02_Yritykset/04_ ... otaulukko/

Karhunkoski · Post by **Karhunkoski** » Fri Sep 19, 2008 12:44 pm

Yes, exactly, good link.

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