Home > Statistics > Energy prices > 2020 > 2nd quarter > Only price of forest chippings rose among fuels in the second quarter

Published: 10 September 2020

Only price of forest chippings rose among fuels in the second quarter

Of the fuels used in energy production, only the price trend of forest chippings continued to rise in the second quarter. The increase in the prices of peat appears to have levelled off, as has the fall in the prices of imported fuels that started in 2019. The price of electricity on the Nord Pool market has fallen strongly. The area price for Finland also halved in April to May from the year before.

Fuel prices in electricity production

After the March price collapse, the world market price of crude oil made an upturn in May, when oil producers reached an agreement on production restrictions. Production restrictions were used to respond to the fall in demand caused by the coronavirus. At least for the time being the price of crude oil seems to have stabilised at good USD 40 per barrel, which is two-thirds of the previous year's price level.

Changes in world market prices were visible in the consumer prices of oil products. Compared to one year earlier, the price of motor gasoline was 15 per cent lower in June and that of diesel oil 16 per cent lower. The corresponding drop in the price of light fuel oil was 22 per cent. Consumer prices were at their lowest in May.

The variation in the import price of hard coal has grown and no trend can be observed in the price in the early part of the year. Compared to the previous year, the price has fallen, however. In the second quarter of the year, the tax-free price of hard coal was nearly one fifth lower than one year previously.

The gas market in Finland was liberalised at the beginning of 2020. For the time being, data concerning the price development of natural gas are too uncertain to be published. Collection of data by customer group is starting and the first data are due to be published at the beginning of the coming year.

Among domestic fuels, the rise in the price of forest chippings continued in the second quarter of the current year. The price was seven per cent higher than one year ago. By contrast, the rise in the price of peat has halted and compared to one year ago, the price of milled peat is two per cent lower. The price of peat was on level with the previous quarter.

The system price of the Nord Pool electricity market derived from the sell and buy bids on the exchange market has continued to fall and was record low in June. The water situation has remained good and the demand for electricity is lower than usual. The available transmission capacity has not been sufficient to level off the prices of the market area. The area price for Finland has been higher than the system price for a long time and the difference has grown considerably during the current year. However, the area price for Finland has fallen. In April to May, the area price for Finland was one-half of the price in the year before. In June, the price was on level with the previous year.

In the second quarter, the fall in the market prices of electricity was also clearly visible in consumer prices. Consumer customers' prices had fallen slightly from the quarter twelve months back. These data derive from Statistics Finland’s Price inquiry on electrical energy.

Source: Statistics Finland, Energy prices

Inquiries: Virve Rouhiainen 029 551 3527, energia@stat.fi

Head of Department: : Mari Ylä-Jarkko

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Appendix tables

• Appendix table 1. Energy taxes, precautionary stock fees and oil pollution fees (10.9.2020)
• Appendix table 2. Energy prices in heat production in June 2020 (10.9.2020)
• Appendix table 3. Consumer prices of heating energy in June 2020 (10.9.2020)

Figures

• Appendix figure 1. Import prices of oil (10.9.2020)
• Appendix figure 2. Consumer prices of principal oil products (10.9.2020)
• Appendix figure 3. Fuel prices in heat production (10.9.2020)
• Appendix figure 4. Fuel prices in electricity production (10.9.2020)
• Appendix figure 5. Price of electricity by type of consumer (10.9.2020)
• Appendix figure 6. Average monthly spot prices at the Nord Pool Spot power exchange (10.9.2020)

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Updated 10.09.2020