Norwegian contrasts. The state and businesses gain, residents lose on their bills
Norway is benefiting from the sharp rise in gas and oil prices. In August, the country's trade surplus reached NOK 100.4 billion, the highest since January 2023. At the same time, high energy prices are translating into higher spending by residents on fuel and electricity.
Consumers do not experience recent events in the same way as the state and the largest companies.
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Statistics Norway (SSB) reported that the value of Norway's exports amounted to NOK 191 billion in August, while imports reached NOK 90.6 billion. Exports rose by more than 30 percent compared with the same month last year. Imports increased by 7 percent. SSB points out that high energy commodity prices were the main contributor to the increase in revenues.
Exports bring in more revenue. Consumers pay more
More expensive energy is increasing the value of Norwegian exports. SSB says that the conflict in the Middle East continues to put pressure on oil and gas prices, which translated into higher export revenues in August. The trade surplus was 69 percent higher than a year earlier. Oil prices alone reached USD 109 per barrel on Monday, compared with USD 73 before the conflict with Iran.
However, the same price increase is affecting consumer spending. At the beginning of September, petrol and diesel cost an average of NOK 25–26 per litre in Norway, while previous tax cuts expired on 1 September. In the south of the country, the average electricity price exceeded NOK 2 per kilowatt-hour on Monday, reaching its highest level this year according to the Nord Pool exchange. Ole Hvalbye of ABG Sundal Collier said that the situation does not look favourable from the consumer perspective.
However, the same price increase is affecting consumer spending. At the beginning of September, petrol and diesel cost an average of NOK 25–26 per litre in Norway, while previous tax cuts expired on 1 September. In the south of the country, the average electricity price exceeded NOK 2 per kilowatt-hour on Monday, reaching its highest level this year according to the Nord Pool exchange. Ole Hvalbye of ABG Sundal Collier said that the situation does not look favourable from the consumer perspective.
The conflict in the Middle East is driving up oil and gas prices.Photo: Equinor press materials
Gas brings in NOK 77.7 billion. Prices are the highest in years
Gas sales are particularly important. Norway exported NOK 77.7 billion worth of gas in August, the highest value since January 2023. Ten billion cubic metres of gas were delivered to customers. This was 1.2 percent more than in August last year.
The European gas price reached EUR 84.5 per megawatt-hour. A year earlier, during the same period, it stood at EUR 32, and SSB points to exceptionally low levels of European gas storage for this time of year, as well as uncertainty surrounding the Strait of Hormuz. According to SSB, these factors pushed gas prices to their highest level in more than three years. High prices therefore meant that the value of sales grew much faster than the volume of the exported commodity itself.
The European gas price reached EUR 84.5 per megawatt-hour. A year earlier, during the same period, it stood at EUR 32, and SSB points to exceptionally low levels of European gas storage for this time of year, as well as uncertainty surrounding the Strait of Hormuz. According to SSB, these factors pushed gas prices to their highest level in more than three years. High prices therefore meant that the value of sales grew much faster than the volume of the exported commodity itself.
The exchange rate also affects trade results. The Norwegian krone strengthened compared with last year, which, according to SSB, in itself reduces exporters' revenues expressed in NOK, while at the same time lowering importers' costs. In August, however, the effect of high energy prices was primarily visible in the value of gas exports and the overall trade surplus.
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