Economics professor Kjetil Storesletten forecasts that gasoline prices in Norway could rise to as much as 35 kroner per liter due to ongoing conflicts in the Middle East, particularly a prolonged war against Iran.
Economics professor Kjetil Storesletten from the University of Oslo warns that high fuel prices are just the beginning if the conflict in Iran continues. Currently, gasoline prices are around 26 kroner per liter, but they could significantly increase if oil prices rise to $150 per barrel, largely contingent on the closure of key shipping routes through the Strait of Hormuz. According to Storesletten, if the war intensifies, it would have dire implications for Norwegian motorists, who may struggle to cope with extreme fuel prices.
Recent analyses from Wood Mackenzie suggest that oil prices could reach $150 per barrel in the coming weeks due to the ongoing geopolitical tensions. Additionally, they have projected that prices could even escalate to $200 per barrel by 2026 if the conflict remains unresolved, a stark contrast to pre-war oil prices that were around $70 per barrel. This predicted volatility in oil prices is expected to create a ripple effect, particularly affecting consumers in Norway where dependency on fuel is high.
Storesletten emphasizes that while drivers might withstand a temporary spike in prices, government intervention will be necessary to mitigate the adverse effects on everyday consumers. As fuel expenses rise, it could constrain household budgets and influence broader economic activities, leading to calls for policy measures to address the impending financial strain on citizens amid these international uncertainties.
