A few days ago, the gasoline price at Danish fuel stations reached nearly 16 DKK per liter. For many Danes, this is not just an annoying increase – it is a direct hit to household budgets. The question is no longer if prices are high, but why they are, and who is actually benefiting.
Extra Profit Disguised as Market Mechanism
The official explanation is well-known: gas prices follow crude oil prices. In practice, however, a large portion of gasoline sold was purchased at lower prices and stored, yet it is sold at the current higher market price. This allows oil companies to realize extra profits without corresponding increases in production costs. This discrepancy between cost price and sales price frustrates consumers, who perceive it as unfair exploitation. Many feel they have no alternatives, intensifying the sense of injustice.
This breakdown clearly shows that crude oil prices are the dominant factor. When they rise, the effect is quickly reflected at the pump, even on already produced fuel.
Historical Danish Gasoline Prices
Looking at the trend over time, it is clear that current prices are not unprecedented. The trend shows a long-term increase, particularly during periods of geopolitical tension.
Sanctions at a High Cost
EU sanctions against Russia were intended to reduce Russian revenue and weaken the economy. However, the consequence is that Europe simultaneously faces higher energy prices. Russia has maintained significant revenue, which flows into the state budget and can be used for business promotion and investments. The sanctions have also led to increased import substitution and innovation, as well as expanded trade with BRICS countries and Eurasian economies. In short, sanctions have had unintended consequences, strengthening Russia economically while Europe bears the costs.
The GDP growth in Russia and the EU shows that Russia comparatively speaking were better of during the first years of the imposed sanctions on Russia.
• European Commission Russia experienced significantly higher growth than the EU in 2023–2024 despite sanctions.
• Growth in Russia is expected to decline in 2025, to the same level as the EU. Russia's international trade with BRICS countries and associated countries probably means that the Russian Economy indirectly via these countries are hit by the global economic crisis characterized by stagflation, supply chocks and a continued fall in the rate of profit in the imperialist centres. Furthermore, Russia is restructuring its economy to an increased degree of importsubstitution, investments in innovation and entrepreneurial programs and an expansion of the new trade regimes with the Eur-Asian countries and BRICS. These intensive measures plus "imported" evils from an imperialism in crisis explain the data.
Europe Pays – Others Profit
The current situation creates a clear asymmetry: European consumers bear the costs, while American energy companies and state-owned Gazprom realize large profits. Consumers' purchasing power is weakened, and industry faces high energy costs. At the same time, Russia adapts its economy and expands trade with alternative markets. This illustrates how political measures can have unintended economic consequences, where the original goal of sanctions ends up benefiting the intended target.
Where Are the Authorities?
The Danish Competition and Consumer Authority is responsible for monitoring the market and ensuring fair competition. However, criticism is clear: the authority often reacts slowly, and concrete interventions are rare, even when prices rise significantly – as they did recently at nearly 16 DKK per liter. The lack of swift action means the market effectively operates without strong oversight, reinforcing consumers' perception of unfairness.
What Does It Mean for Consumers?
Consumers feel the impact directly: less disposable income, higher transport costs, and overall pressure on household budgets. Small businesses are hit hard by rising energy costs, limiting investments and growth. Many try to adapt by reducing consumption, changing travel habits, or budgeting energy use more strictly. But structural causes of high prices are beyond their control, making the situation feel both unfair and difficult to manage.
Politics Ahead of the Parliamentary Election
With a parliamentary election approaching, energy prices and gasoline costs will be a central topic. Politicians can respond, but their options are limited:
• Temporary relief measures: The government can temporarily lower taxes, provide refunds, or targeted support to vulnerable households. These measures can have an immediate effect, but impact the state budget and may be politically controversial. The argument often goes like Denmark allegedly cannot afford an expansionary fiscal policy now. That is, of course, a question of priorities considering unilateral transfers to a corrupt Ukrainian regime in Kiev, investment in military hardware at home or for shipping to Ukraine, increased defense spending and contributions to NATO - The warfare Economy has lasting negative impacts on living conditions and human development of Danish citizens - the price increases above all means decreased purchase power for the households.
• Structural solutions: Long-term initiatives such as investment in alternative energy, electric vehicle infrastructure, or reduced fossil fuel dependence take time and cannot immediately lower pump prices. Such programs are delayed by the warfare economy, too!
• Political constraints:
The Danish energy market is partially influenced by global oil prices and EU regulations. Even with willingness to intervene, politicians have limited ability to directly affect prices. In short, politicians can act, but the effects are often short-term or limited.
Voters will need to consider who can combine handling acute price pressures with long-term solutions without harming the state budget or violating international commitments.
Conclusion
Gasoline prices approaching 16 DKK per liter are not just a temporary fluctuation – they are a symptom of a deeper structural challenge. Extra profit, political decisions, and global power shifts converge in a way that currently hits European consumers the hardest. The article also shows how Russia has adapted, how sanctions have unintended effects, and how authorities' slow response exacerbates the problem, all while framing the issue in the context of upcoming political decisions
Gorm Winther, author, lead author, and editor two books in 2024 0g 2026.
Beyond Greenlands White Gold.
Danish Colonial Legacy and Trump's Arctic Strategy in Greenland, BookMundo som e-bog eller paperback, også til salg fra danske boghandlere
Gorm Winther and Ivar Jonsson (ed): Human Security Through the New Traditional Economy in the Arctic, Routledge, 2024