A car is being refuelled at the Leppäsuo service station in Helsinki. LEHTIKUVA
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Fuel prices in Finland have dropped sharply in recent weeks, driven by declining global oil prices amid rising trade tensions triggered by US policy.
The average cost of 95E10 petrol stood at 1.737 euros per litre on Saturday, while diesel sold for 1.644 euros per litre, according to the fuel price tracking site Polttoaine.net. This marks a clear drop from March levels, when average prices for both fuels hovered around 1.79 euros per litre.
The price shift reflects a broader global trend, with Brent crude oil briefly falling below 60 US dollars per barrel earlier this month. This is the lowest level recorded in more than four years.
Hanna Kalenoja, senior advisor at the Finnish Chambers of Commerce, said the drop began earlier in the year and accelerated after US President Donald Trump introduced high import tariffs. The trade war has weakened economic growth forecasts, with falling consumption expectations further depressing oil prices.
“The current situation in the fuel market is mainly a reflection of global uncertainty,” Kalenoja said. “Reduced demand due to economic slowdown fears is behind the oil price drop.”
Forecasts by the International Energy Agency and OPEC have also revised global oil demand growth downwards, citing weakening industrial activity and the impact of trade disputes.
Fuel prices in Finland have also been affected by developments in the renewable fuels market, which tends to follow the price trends of fossil fuels. The drop in raw material costs has further pulled down pump prices, Kalenoja explained.
Diesel, once on par with petrol in early 2025, is now cheaper again. According to Kalenoja, this is consistent with the lower level of taxation on diesel. “Between 2015 and 2020, diesel was regularly 15 cents per litre cheaper than petrol,” she noted.
Since Russia’s full-scale invasion of Ukraine in 2022, diesel prices in Europe have faced added pressure due to reduced refinery capacity and the need to import fuel from the Middle East, North Africa, or North America.
“There aren’t enough diesel refineries in Europe,” Kalenoja said. “If imports from Russia are restricted, alternatives are more expensive due to transport and market dynamics.”
Despite stabilising conditions, retail prices have yet to fully reflect the decrease in crude oil prices. Kalenoja said this is partly due to fluctuations in supply contracts, local competition, and short-term pricing strategies by retailers.
She also pointed out that seasonal changes affect diesel prices, as heating oil — chemically similar to diesel — is more heavily used in winter.
If trade tensions subside, oil prices could return to a range of 70 to 80 dollars per barrel. But if the trade war escalates, current lower prices might persist.
“Consumers may not see the full benefit at the pump immediately,” Kalenoja said. “But planning when and where to refuel can still result in significant savings, especially for those who drive long distances.”
HT
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Source: www.helsinkitimes.fi
