Oslo has always appeared to be a model European city: shiny, happy people lapping up modern and classical art in its spick-and-span functionalist city centre, and a bounty of fjords, lakes and forests within minutes of the city centre. Except, that is, for one major irritant: it's also the most expensive city in the world, according to the Economist - for the second year running.

The local authorities have responded to the bombshell by launching the cheesily named, but devilishly useful Streetwise Guide (free from the Use It offices on Møllergata 3 or free PDF download at use-it.no). With over 60 pages of cheap eats, free tours, and insider tips, I was armed and curious.

Of course, you have to get there first, but this bit was easy-ish. I picked up one of those mercurial 1p each-way Ryanair fares (£20 after tax) and pitched up in Oslo. Or what I thought was Oslo. Oslo (Torp) - as the website denotes - is a bit like saying London (Birmingham). But the one-hour-and-40-minute bus journey to Oslo proper was a real teaser. The bus snaked the outline of shimmering lakes, cut through pine forests and over hills before, rather abruptly, arriving in the centre of town.

Getting your natural fix in Oslo is an inexpensive piece of cake (a sponge, perhaps?) Streetwise pointed me to the Vippentangen port, a 20-minute walk south of the city centre. From here, the number 93 commuter ferry slips out into the inner Oslo fjord, and within seconds you feel miles from anywhere.

A full circuit on the ferry takes 40 minutes, with the option of stopping off at path-lined islands smothered in lush greenery and dotted with waterfront pastel cottages. If you're feeling adventurous, on the island of Langoyene you can pitch a tent for free. Best of all, ferry travel in Oslo is included within the price of a £5 City Pass, available at subway stations.

After my tour of the fjord, I headed over to Vigeland park in the northeast of the city, where hundreds of youngsters and families were laid out around barbecues in the sunshine. The backdrop was dozens of Rodin-esque sculptures of couples captured in elaborate clinches by Gustav Vigeland, one of Oslo's most celebrated artists. The Nkr10 (80p) disposable barbecues are a national institution, as are half a dozen morr - local cured sausages - at roughly the same price.

As the sun set over the park, the crowds failed to subside; merely switching their consumption from eating to drinking. I realised I was witnessing another Norwegian institution - summertime alfresco vorspeil, which roughly translates as "warm-up party" (pinched from the German word for foreplay) and entails guzzling as many of your own beers as you can before hitting the bars, where a pint costs a spine-tingling £4.50.

If you don't fancy doing it all yourself, the Streetwise guide has an entire section dedicated to cheap eats - a godsend in a city where two courses in a mid-range downtown restaurant will set you back over £50. I opted for a curry in Grønland, Oslo's Brick Lane, where low rents have pulled in a largely immigrant population (mostly Pakistanis - Grønland is sometimes referred to as "Little Karachi"), and more recently the gifted-but-broke arterati and a proliferation of trendy bars.

The grotty weather on my last day forced me indoors, but Streetwise's gallery tips were just as reliable. In the space of two hours, I was in the presence of two "classics" without paying a penny. The Nasjonalgalleriet (Universitetsgaten 13, nasjonalmuseet.no) houses one of the original series of Edvard Munch's The Scream. At the other end of Karl Johans Gate, central Oslo's main artery, the Astrup Fearnley Museet For Moderne Kunst (Dronningensgate 4, af-moma.no), I gazed, a little confused, upon a modern classic, Damien Hirst's Mother and Child Divided - two cows split in half and suspended in cellulose.

So, if you arm yourself appropriately, Oslo really isn't anything to be afraid of. The damage? I spent just over £160 all in. Note to the Economist: put that in your equation and smoke it.

· Ryanair (ryanair.com) flies Stansted-Oslo (Torp) return from £20 rtn inc tax. The Anker Hostel (ankerhostel.no) has dorm beds from £12pn.

Readers' guide to budget Oslo

Haraldsheimen

A youth hostel with panoramic views of the city, a 20-minute tram ride from the city centre. A single room with bathroom costs Nkr365 (around £31).

· Haraldsheimv 4 (0047 2222 2965, haraldsheim.oslo.no).

GwladysFouche

---

MS Innvik

Theatre ship with B&B and bar. The ambience is terrific and the price of a bed for the night is reasonable for Oslo. The beer isn't very expensive either. The fjord is usually calm and it's a delightful experience to sit and look out over the sea while enjoying a cool lager and listening to Afro-Caribbean music.

· bedandbreakfast.com/norway/ms-innvik.html.

cronelit

---

Sult

Creative kitchen and good cooking, not too expensive.

· Thorvald Meyersgate 26, Grünerløkka.

Pingo

---

Coco Vika

An excellent and very reasonably priced restaurant serving sushi and other Asian-inspired cuisine.

· Dronning Mauds gate 1, near the Town Hall (+2283 1818).

Magpiec13

---

Grønlandsleiret

If you're short of cash and aching for a pint, work your way down East Oslo street. The cheapest beer in town.

· Grønland station (all tube lines), Brugata tram stop.

pneuma