Petrol price reaches 2010 high

The major petrol retailers in Sweden have hiked prices by a further 0.10 kronor to 13.37 kronor ($1.85) - a record high for 2010.

Since the turn of the year prices have climbed by 0.73 kronor per litre and from 11.69 per litre in the corresponding month of 2009.

Diesel prices have also been hiked by 0.20 kronor to a year high of 12.56 kronor per litre.

The price rises have been put down to higher crude oil costs and the improved economic climate.

“However, there is no real substance for the price increases when both crude oil and gasoline stocks in the U.S. are actually increasing,” said Ulf Svahn of the Swedish Petroleum Institute to news agency TT.

Svahn expects prices to continue rising as the summer approaches.

“Expectations of higher demand for the summer season has steadily increased recently and it may mean that petrol prices reach around 14 per litre this summer,” he said.

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Petrol hike marks start of Swedish ‘driving season’

Tourists have been enjoying unexpectedly inexpensive road trips in Sweden this summer thanks to falling petrol prices. But the treat turned out to be as short as it was sweet.

Petrol hike marks start of Swedish 'driving season'
Fuel prices are going up in Sweden. Photo: Fredrik Persson/Scanpix

Sweden's leading petrol companies raised their guideline price of unleaded petrol by 0.20 kronor on Monday, bringing the total price up to 14.29 kronor ($1.66) per litre.

The hike follows a number of cuts in the past month during a summer that has been unusually kind on Swedish drivers.

Normally, prices are pushed up at this time of year due to rising demand as consumers hit the road for their summer holiday.

But thanks to the price of crude oil falling across the globe, the cost at pumps in Sweden has remained lower than normal this season.

“I like to see the price of crude oil as a surface of water with petrol prices as corks that can either float high or low in the water. At the moment, the price of petrol is at its highest, but the price of crude oil has been falling steadily,” Ulf Svahn, chairman on the Swedish Petroleum and Biofuels Institute (SPBI), told The Local last month.

The benchmark price for crude oil worldwide, Brent Crude, was $51.09 per barrel on Monday – down from an average of $102 in July last year.

READ ALSO: The Local's ultimate guide to travel in Sweden

Tourists have been flocking to Sweden this summer, despite the rather disappointing weather.

But foreign drivers hoping to score an even cheaper deal are advised to wait until September, when there's likely to be a sharp drop in costs at the pumps.

”The classic European summer holiday is in August, or as we call it 'driving season', so we have to wait until September before demand — and the price — drops,” said Svahn.

Etanol fuel E85 also went up by 10 öre to 10.83 kronor a litre on Monday. The price of diesel remained unchanged at 12.90 kronor.