Petrol prices in Finland are expected to rise above €2 per litre following a spike in global crude oil prices caused by renewed conflict in the Middle East.
The rise follows a recent US airstrike on Iran, which led to a small but notable increase in crude oil prices. Experts say the situation could escalate further if Iran closes the Strait of Hormuz, a key route for global oil and gas shipments.
Although Finland sources only a minor share of its crude oil directly from the region, the international price movements affect local fuel costs. Increases of 15 to 25 cents per litre are considered likely.
Kari Liuhto, professor at the Turku School of Economics and director of the Pan-European Institute, said, “I do believe that Finland will see pump prices rise to over two euros.”
Jukka Leskelä, Managing Director of Finnish Energy, stated that price trends remain difficult to forecast. “I consider it unlikely that the oil price alone would have a significant effect on our heating or electricity prices. But it could of course affect transport fuel prices,” he said.
Leskelä noted that gas price increases would have a stronger impact in Central Europe than in Finland due to the country’s low dependence on gas and coal for electricity production.
Veli-Pekka Tynkkynen, an energy specialist from the University of Helsinki, said the situation underlined a broader issue. “Russia's war of aggression has made it clear that the link between hydrocarbons, oil and gas, and violence is obvious, and this situation highlights it once again,” he said.
He added that energy-producing states can destabilise the global economy by manipulating oil flows.
Minna Kuusisto, Chief Analyst at Danske Bank, said the uncertainty triggered by the US airstrike is already affecting economic sentiment. “No one really knows what will happen next. This makes all economic decision-making more difficult,” she said.
Kuusisto warned that prolonged high energy prices would affect other sectors as well, pushing up the costs of various goods and slowing recovery.
HT
