Finnish forestry and transport firms face collapse as fuel costs surge by €100,000 per month

Fuel price spikes driven by the Iran war are threatening the survival of Finnish forestry and transport businesses, with some firms now operating at a loss and facing potential bankruptcy, *Yle* reports.

Janne Paakkola, owner of a forestry machinery company in Iisalmi employing 40 people, said his monthly fuel costs have risen by **€100,000**—a jump from 30% to over 40% of his revenue. His 16 machines consume **200,000 litres of fuel monthly**, with current prices adding six-figure expenses.

*”This situation creates huge uncertainty for the business,”* Paakkola said. *”We’re forced to operate at a loss.”*

Transport firms report similar strain. Sakari Enbuska, CEO of Kuljetusliike Enbuska (30+ employees), said prolonged transport routes and fuel surcharges—adjusted monthly under standard contracts—are pushing costs up by tens of thousands per month. He called for **weekly price adjustments** to match the crisis.

*”We’re driving at significantly lower rates now,”* Enbuska said.

**97% of Finland’s transport fleet runs on diesel**, according to Petri Murto of *Suomen Kuljetus ja Logistiikka SKAL*. Without relief, he warned, the cost shock could trigger bankruptcies and erode national competitiveness. Sweden has proposed temporary tax cuts on fuel to ease the burden.

Compounding the crisis, an **early winter** has degraded road conditions, forcing longer detours for timber hauling. Poor infrastructure adds costs, while legal limits on leaving felled trees in forests—meant to prevent pests—shorten the operational window.

*”Road maintainers must improve planning, like better gritting and surfacing, to keep routes usable,”* Enbuska urged.

Metsä Group’s Jarkko Parpala noted that unusable roads force timber into costly intermediate storage, delaying deliveries until summer. *”Investing in road upkeep would save everyone money,”* he said.