10% consumption increase in Norway

olekriri · Tar Sands Joined: Apr 22, 2008 Posts: 33

760 million litres og gas and diesel were consumed in Norway in April.

Diesel increased with 21.9% while gas fell 5.7% compared to last year. Total growth is 10,2% compared to April 2007.

The average price was $9.38/gallon for gas and $9.46/gallon for diesel (diesel has lower taxation), the highest in Europe.

3aidlillahi · Intermediate Crude Joined: Mar 25, 2008 Posts: 547

[quote="olekriri"]760 million litres og gas and diesel were consumed in Norway in April.

Diesel increased with 21.9% while gas fell 5.7% compared to last year. Total growth is 10,2% compared to April 2007.

The average price was $9.38/gallon for gas and $9.46/gallon for diesel (diesel has lower taxation), the highest in Europe.[/quote

Why would diesel go up so much while gas goes down? Is it a transfer from gas powered vehicles to diesel-powered? Or is it increased shipping and truck-transit?

Kudos to the Norwegians. Imagine having some of the world's largest oil revenue with their oil exports only to turn around and tax their own oil consumption to "death". That takes a very educated population whose willing to look beyond the next year and a government that can resist temptations. Norway can come out very prosperous over the next few decades with the choices they've made.

Let's just hope they don't let the revenues go to their heads and lower taxes and increase fuel consumption even more. 10% is pretty staggering, comparable, IIRC to China's growth. But is it a trend or the product of a doubling in oil prices over a year?
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Riches are not from abundance of worldly goods, but from a contented mind.

olekriri · Tar Sands Joined: Apr 22, 2008 Posts: 33

Well, there has been some complaining lately because the goverment has decided to increase fuel taxes from July 1.

The taxation on both the cars themselves (which is extremely high in Norway for high-emission cars*) and fuel has been more friendly towards diesel for several years. Most cars sold last year was diesel based.

*A new Jeep Grand Cherokee costs 1 million NOK, around $200,000.

3aidlillahi · Intermediate Crude Joined: Mar 25, 2008 Posts: 547

Cashmere · Light Sweet Crude Joined: Mar 27, 2008 Posts: 1437

Gotta love the Norwegians.

Nothing can create a false sense of superiority like a giant oil booty.

There was some guy on the site a year or two ago bragging about how Norway used almost no fossil fuels.

Guess he wasn't counting all of the oil that was being sold and burned elsewhere.
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Massive Human Dieoff must occur as a result of Peak Oil. Many more than half will die. It will occur everywhere, including where you live. If you fail to recognize this, then your odds of living move toward the "going to die" group.

olekriri · Tar Sands Joined: Apr 22, 2008 Posts: 33

SteinarN · Tar Sands Joined: Sep 20, 2007 Posts: 72 Location: Norway

There was a big change in taxation on new cars starting 1. january 2007. We had taxation for horse power, weight and motor displacement. From 1. january 2007, the taxation for motor displacement was removed and replaced with a taxation for co2 emission. Thus cars with high fuel consumption got higher taxation and cars with low fuel consumption got lower taxation. A car with diesel engine has considerably lower co2 emission compared to the same car with petrol engine. Thus a diesel engine car is normally considerably cheaper than the same car with petrol engine. Also auto transmission can cost as much as US$ 5.000 to 10.000 extra solely due to higher co2 emission and higher co2 taxation.

In 2006, roughly 50% of new cars sold was with diesel engines. In 2007, the first year with the new taxation system, the diesel part was 75% of new cars sold.

kilik · Tar Sands Joined: Dec 13, 2007 Posts: 21 Location: Norway

Norwegians spend less of their money on gas compared to 1998.

The gas price has increased 55% from $6.13/gallon in May 1998 to $9.49/gallon in May 2008.

The average salary has increased 50-55% during the same period. On top of that the cars have become a bit more efficient.

In 1998 Norwegians spent 4.2% of their income on gas, in 2008 it's only 3.2%.

Serial_Worrier · Heavy Crude Joined: Jun 05, 2008 Posts: 224

SteinarN · Tar Sands Joined: Sep 20, 2007 Posts: 72 Location: Norway

The GDP has been increasing roughly 4% yearly the last several years. This year it is sheduled to a lower increase, maybe 1.5 to 2%. The unemployment rate is less than 2%

An important factor for the recently high yearly increase in GDP has been a very high activity in the private housing building sector. This sector has slowed down considerably this year, thus the falling rate of increase in GDP. Also the spending on other exspensive luxury like boats, cars, cabins are showing a noticeable decline due in large part to rising interests rates.

However traditional raw material exports as vell as exports like advanced ships for the oil industry and other oil and maritime related industry is strong and well paid.

In sum Norway has benefited from strong demand in raw materials and oil and maritime related products and high prices for those products.