City of Reykjavík demands damages from oil companies Skip to content

City of Reykjavík demands damages from oil companies

The city of Reykjavík announced yesterday that it is demanding ISK 150 million in damages from three oil companies Olís, Esso and Skeljung. Reykjavík is seeking the damages because price fixing that occurred when the city put oil contracts out for bid 1996.

Thórólfur Árnason, former mayor of Reykjavík, was a manager at Esso when the price fixing took place reports the Icelandic National Broadcasting Service. He stepped down as mayor last year because of the scandal. Thórólfur is now president and CEO of Icelandic Group, which focuses on the production and sale of seafood products.

The demand for damages was presented yesterday to the city council. According to the lawyer representing Reykjavík, it has been proven that price fixing took place in 1996 in bids for oil contracts for the Reykjavík Buses, the city’s Asphalt Plant and the city’s Truck and Equipment Depo. The contracts, agreed to in 1996, expired in early 2002.

In a letter sent to the oil companies, the city asks to be paid the amount no later than October 14. If no payment has been received by that date the city will file charges.

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