Car Owners: Fuel is Still Too Expensive Skip to content

Car Owners: Fuel is Still Too Expensive

The Association of Icelandic Car Owners has criticized the oil companies, saying that lower world wholesale prices are not being felt proportionately by consumers. The oil companies disagree.

Jón Ólafur Halldórsson, president of Olís, says that lower oil prices actually are being passed on to consumers; while the president of Shell Iceland says that the size of price cuts has been lower because of increased wage costs and the higher price of imported resources.

According to the Association of Icelandic Car Owners, the oil companies have increased their levies on fuel prices by around four percent in the last year, which is double the increase seen in Sweden. However, the retail price of petrol and diesel in Sweden has dropped by just five percent in the last year, compared to ten percent in Iceland, RÚV reports.

“I can confirm that this reduction has been passed on to the consumer,” says Jón Ólafur.

“If one looks closer at what happened here last sutumn. With this huge, sharp reduction it simply happened that our retail price did not always manage to reflect costs at every moment. The retail price went down very sharply and faster than we managed to continue to keep costs steady. It was clearly in the consumer’s interest, but we went through big changes in our operation and lost a lot of money last autumn,” he says.

Valgeir Baldursson of Shell says that while oil prices have gone down, the cost of wages and imported goods has gone up—adding that the Association of Icelandic Car owners’ figures are over-simplified; especially given the regular discount promotions on fuel.

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