Cheaper Swedish fuel draws Finnish drivers across the border

Finnish motorists are increasingly crossing into Sweden to fill up after a tax cut made fuel up to 80 cents per litre cheaper there, cutting sales at stations along Finland’s western border.

Fanni Klemetti, who runs a Gulf station in Ylitornio, said the drop in fuel sales has not hurt her convenience-store revenue. “Whether we sell a lot or a little less fuel doesn’t really affect our indoor sales—food or other products,” she said.

The Swedish tax reduction, in force since early July, runs until the end of September. Lapland Petrol Retailers chair Mika Kuusela noted that while Finns chase the cheapest pump price, stations rely on in-store margins; the current profit on a litre of petrol is about three cents.

Marko Puranen, who operates a Neste station in Karesuvanto, said tourists now fill up in Sweden and often skip coffee and pastries on the Finnish side. Some Finnish drivers, especially businesses using company cards, still refuel domestically.

Janne Kivikankare, Restel Taukopaikat’s regional manager, reported a modest rise in in-store sales at Kemi and Tornio service areas in early July compared with late June.

The tax break makes Swedish petrol among the cheapest in Europe. Mika Mäki, who owns seven Lapland stations, said the high Finnish price may shorten holiday trips and reduce car tourism to Lapland, but he doubts Finland can afford a similar tax cut. “The harm is only here on the western border,” he said.