The price of fuel in Iceland has risen by 20 percent in just one year, according to calculations by the Icelandic Automobile Association (FÍB). The current annual cost of operating a personal vehicle ranges between ISK 770,000 (USD 11,400, EUR 7,800) and ISK 1.5 million (USD 22,200, EUR 15,100).
“For influencing items of expenditure the best bet is to purchase a compact car with low gas consumption, try to do some of the maintenance at home and keep the resale price in mind when buying a new car,” executive director of FÍB Runólfur Ólafsson told Morgunbladid.
According to Ólafsson, apart from the rise in fuel prices, the price of insurance has risen 12 percent since January 1, 2007. The price of the vehicle itself is within limits of general price development, however.
The depreciation of new cars is approximately 20 percent for the first year, and thus a car should never be observed as an investment, but rather as an object of utility which involves variously high expenses, said Ólafsson.