The methods for stipulation and use of norm prices

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Unformatted text preview: ices agreed between two parties are equal to what two independent parties would have agreed upon jointly for each individual sale. In order to avoid this problem, Section 4 of the Petroleum Tax Act16 states that norm prices may be stipulated and used in the calculation of taxable income, instead of the actual sale price. The methods for stipulation and use of norm prices are described in the regulations. The norm price is fixed by the Norm Price Board, and should be equivalent to the price paid for the petroleum had it been traded between independent parties. The Norm Price Board has six members; four of them are independent, while the Ministry of Finance and the Ministry of Petroleum and Energy have two members each. Norway does not just sell crude oil. Norway also has a refinery system. The Norwegian refinery industry consists of two refineries, Mongstad and Slagen. The Mongstad refinery is owned by StatoilHydro (79%) and Shell (21%), whereas ExxonMobil owns the Slagen refinery. The two refineries' ca...
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