Fuel prices in Norway have gone up instead of down. Government under pressure

From April 1, Norway has a temporary abolition of road tax on fuel, which is expected to last until the end of August. Gasoline prices were expected to drop by CZK 4.41 per liter (approx. PLN 1.70) and diesel prices by CZK 2.85 (approx. PLN 1.10)..
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However, the changes did not bring the expected effect. This is what happened because the day before the reduction came into force, gas stations raised priceswhich in many parts of the country resulted in an increase in fuel costs by over 4 crowns. As a result, prices again approached 30 kroner per liter (approx. PLN 11.50).
Syver Orhagen from Drivstoffappen, a company that monitors fuel prices, noted that the increases occurred instantly.
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— The jump occurred one afternoon, the day before the cut came into effect. Prices rose by approximately as much as they were supposed to fall on Wednesday — he said in an interview with the “Dagbladet” daily.
Politicians and drivers demand explanations
Wednesday morning brought disappointment to drivers. The average price of diesel was higher than the day before, and the drop in gasoline prices turned out to be much smaller than expected. The leader of the Progress Party, Sylvi Listhaug, who actively supported the reduction of fuel taxes, did not hide her outrage.
— This is unacceptable if tax cuts do not benefit consumers. We expect prices to be reduced in line with the tax cuts, she said in the VG daily.
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In response to the situation, the Dieselbroelet movement, which brings together drivers and representatives of the transport industry, announced decisive action. Blockades of Oslo's bypasses are planned for April 10 if fuel prices are not reduced as announced.
Pricing mechanisms under the microscope
The current situation raises questions about price setting mechanisms on the fuel market, which, according to commentators, may work to the detriment of consumers. The price increase a day before the planned tax cut has sparked a wave of criticism against gas station operators, and politicians are calling on drivers to put pressure on sellers.
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The Norwegian government, which justified the decision to temporarily abolish road tax with the desire to support citizens in times of high costs of living, is in a difficult position. If tax cuts do not translate into real benefits for consumers, it may undermine confidence in the actions taken.




