Prices of imported fuels raise in Q2

Prices of imported fuels went up in the second quarter of the year, according to Statistics Finland.

This was partly due to tightening of taxation concerning fossil fuels. The exchange price of electricity was in June considerably higher than last year.

Consumer prices of all types of liquid fuels rose. In March, the price of motor gasoline was six per cent higher and that of diesel oil 12 per cent higher than in the corresponding period last year. The price of light fuel oil went up by 25 per cent in the corresponding period.

The tax-free price of hard coal fell in April, but turned upwards again in May to June. In June, the tax-free price of hard coal was nine per cent higher than one year before. The tax-free price of natural gas also went up in the second quarter, by two per cent. In June, the tax-free price of natural gas was 12 per cent higher than one year back. In Finland, the fuels for electricity production are tax-free while excise duty is paid on fuels used in heat production.

The taxes for both hard coal and natural gas were raised at the beginning of the year. The taxable price of hard coal grew continuously in the second quarter of the year. In June, the taxable price was seven per cent higher than one year earlier. The corresponding rise in the price of natural gas considering the tax increase was 10 per cent. The prices of forest chippings and milled peat used in electricity and heat production decreased by two per cent in the second quarter compared with the corresponding period of the year before.

The consumer price of wood pellets grew by two per cent from last year's May to this year's May.

The growth in the early part of the year in the system price derived from the sell and buy bids on the Nordic electricity exchange continued in the second quarter. The price went up due to a rise in the exchange price of carbon dioxide emission rights and the worsened water situation in the Nordic countries. In June 2018, the average of the system price was 82 per cent higher than one year previously. The Finnish area price was 54 per cent higher in June than one year before.

In March, the electricity prices for households rose on average by one per cent in all consumption categories compared to March 2017. For enterprise and corporate customers, the prices of electricity were 4 to 17 per cent higher than last year except for one consumption category, where the price fell by one per cent. Household customers’ electricity prices are based on the obligation to deliver prices published by the Energy Authority, while the prices of enterprise and corporate customers are based on Statistics Finland's price inquiry on electrical energy. The obligation to deliver price reacts slowly to changes in electricity prices on the Nordic electricity exchange.