Finnish transport sector calls for action to curb fuel price rise

Finnish transport associations are calling on the government to take immediate action over rising fuel prices, which have already reached levels damaging the country’s economy, Verkkouutiset reports.

The Finnish Transport and Logistics Association (SKAL), the Finnish Bus and Coach Association and the Finnish Taxi Owners Association said companies engaged in freight and passenger transport were suffering significant losses due to rising energy costs.

Over the past six months, the price of diesel has risen by more than €0.50 per litre, with prices already exceeding €2.50 per litre in some areas.

According to SKAL estimates, for freight transport companies alone, the increase translates into additional annual costs of up to €480 million.

The industry associations said the competitiveness of the commercial transport sector was not only an issue for the transport industry but for the Finnish economy as a whole. Rising fuel costs will affect the construction sector, retail and industry and, ultimately, drive up costs for consumers.

The associations have proposed reducing the mandatory share of biofuels in the fuel mix from 19.5% to 9.5%, which they say would cut the price of diesel by €0.10–€0.15 per litre. Another immediate measure could be a reduction in fuel taxes.

Finland’s competitiveness could decline if the government fails to respond to the prolonged energy price crisis, the transport associations warned. They noted that many European countries had already taken similar measures.

By Bakhtiyar Abbasov