Fuel prices in Iceland have risen by ISK 40 since the start of the year, and the price of a liter in the capital area is now up to ISK 270 in some places. This increase is mainly due to the increase in prices on the world market. This is almost a third of the selling price.
Fuel prices are also influenced by increased demand as the world economy recovers from the epidemic. Growth is expected to continue.
Runólfur Ólafsson, chairman of FÍB, however, says the fact that the tax on fuel companies is high cannot be ignored. However, at stations around Costco, prices are much lower, around 230 ISK.
Runólfur thinks it’s not hard to justify that a Garðabær gas station can offer you ISK 40 cheaper than elsewhere.
FÍB also considers that the government should investigate whether there should be a temporary reduction in excise duties on fuel in the light of high world market prices.
For example, in 2002, the fuel tax was temporarily lowered because there were concerns that an increase in fuel prices might undermine the objectives of the wage bargaining agreements.
Source: Yle