A sudden drop in crude oil prices in international markets this week has raised expectations among motorists of significantly lower costs at the pump when refueling.
Mika wiljanen, the CEO of Finnish gas station chain ST1, says prices will come down, but not right away.
“If the current trend continues, we will indeed see a decline, with a slight delay,” Wiljanen told Yle.
How much do you expect to see lower prices at gasoline and diesel service stations?
âIt’s good to remember here that the final cost is affected by many factors. One of the main factors is our fuel taxes, plus VAT. The proportion of crude oil is smaller. In this regard, there will not be “There will not be huge changes along the way, but certainly in a few days, a week or two, some impact will be visible.”
Why are prices falling slowly, but always rising rapidly?
“It is largely [price] movement caused by local competition. When competition for customers is fierce, the price level sometimes drops to such a low level that you have to react. Then, competition continues and prices fall more slowly. This is probably the reason for the phenomenon. “
The demand for gasoline often increases during the summer months, which drives up prices. Will it happen this summer?
“In the current situation, this is extremely difficult to predict because total world demand will have a strong influence. If demand remains weak and there is no upsurge, it is unlikely that this will lead to a surge in prices. price in summer. “
What is most crucial right now for prices at the pump?
“The bottom line is what kind of deal the big oil-producing countries come to, because the question is at what level prices balance out.”