Gas prices are at an all-time high in Iceland. That has had a huge impact on car owners and many other sectors of the economy. Traffic is decreasing and sale of gas as well.
In one year the liter of gas has become 37 percent more expensive and the price for one liter of diesel oil has risen by 50 percent. The price for airplane fuel has increased sixfold in six years and the price for shipping fuel has doubled in one year. Morgunblaid reports.
Gas prices increased by six percent in May and have risen twice in June. High gas prices are believed to be one of the reasons why the cost of living index and the consumer price index has been steadily rising.
The economic impacts of this inflation will unfold in the coming months. The impact will immediately have an affect on airlines tariff and operational cost of shipping companies or any other business that rely on the usage of fuel.
The impact on tourism will come later since tourists usually pre-book their trips. The low rate of the Icelandic króna will lessen the impact on tourism.