Gasoline price reaches record high in Sweden

In Sweden, the price of gasoline has for the first time gone above 16 Swedish krona (1.56 euros) per liter, Swedish Television reported on Friday.

There are no signs of an impending price drop, meaning car journeys look set to be costly during the summer's high season.

"Those wishing for lower gasoline prices face poor odds judging by the current state of the market," said Ulf Svahn, CEO of the Swedish Petroleum and Biofuel Institute.

On Friday morning, the leading gas giants in Sweden raised the price of 95-octane gas by 0.20 krona at manned gas stations, thereby passing the "psychological 16 krona barrier", as Swedish newspaper Expressen was the first to report.

"It's the first time we pass 16 and it's the highest price ever so of course this is notable," Svahn told Swedish Television.

One factor affecting the price is the rising cost of crude oil, but the primary reasons behind the price hike, according to Svahn, are higher taxes on fuel coupled with the Swedish krona dropping against the U.S. dollar.

Svahn does not believe there will be any immediate effects on Swedes' driving habits. However, fuel-efficient cars are becoming more popular and the high price of gas could also affect the debate around diesel vs. gas.

The only chance of a price drop is if the cost of crude oil goes down or if the Swedish currency is strengthened, said Svahn.