Standard prices for crude oil

In order to calculate taxable income for the oil companies, the Petroleum Price Council (PPR) sets norm prices. The main principle for norm prices is that they should correspond to what petroleum could have been traded for between independent parties. A separate regulation regulates the setting of norm prices. The Ministry of Petroleum and Energy collects information about the sale of oil, wet gas and natural gas. The PPR meets once a quarter to set norm prices for the previous quarter. As a rule, the norm price is set in NOK per barrel for each day for each crude oil quality. PPR collects information from a number of sources, including the companies on the shelf. PPR also has meetings with the companies before the final norm price is set. The stipulated norm prices can be appealed to the Ministry of Petroleum and Energy within 30 days. In cases where PPR does not set the norm price, the actual sales price should be based on the equation.