The last time gasoline prices in Sweden were at such a low level was four years ago, according to the statistics website bensinstation.nu.
The website states that you can fill up a liter of 95-octane gasoline for 15 kronor and 59 öre at several locations around the country, while a liter of diesel costs 17 kronor and 19 öre.
Crude Oil in Control
Christian Kopfer at Handelsbanken explains that there are several factors behind the lower prices. For example, the tax on fuel has been reduced and the krona has also strengthened against the dollar in recent times.
But perhaps the most important factor is that the crude oil price is at low levels. Gasoline prices are based on the crude oil price, after all. The fact that crude oil is at low levels is due to the low economic growth. There has been relatively low demand for crude oil from the transportation sector and the chemical industry, he says.
At the same time, the American oil companies have increased the US production to the world's highest levels. Recent data has shown a larger increase than expected. Another reason is that Opec, led by Saudi Arabia, is working to increase its production.
Can Fall Further
According to Christian Kopfer, it is likely that gasoline prices can fall further. At least in the short term.
The bank expects the krona to strengthen further, which will give slightly lower prices. The economic boom has not really taken off yet, while oil production can increase further.
It wouldn't surprise me if the price goes down a bit more, he continues.
A dollar now costs 10.09 kronor. This represents a fall of over 10 percent against the krona since the peaks in January.
