Fuel Prices Reach a New High in Iceland Skip to content

Fuel Prices Reach a New High in Iceland

Fuel company N1 raised the price of gasoline by ISK 5 per liter yesterday and of diesel oil by ISK 4.5 per liter. One liter of gasoline now costs ISK 218 (USD 1.9, EUR 1.4) and has never been higher. One liter of diesel oil also costs ISK 218 after the increase.

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Photo by Páll Kjartansson.

Magnús Ásgeirsson, purchasing manager at N1, told Morgunbladid that there are a few reasons for raising the fuel prices: the development of the world market price, the weakening of the Icelandic króna against the US dollar and higher taxes.

Taxes are raised when new supplies of each type of fuel goes on sale, Ásgeirsson explained, the latter phase of the increase of fuel taxes as decided by the Icelandic parliament, Althingi, in December is currently taking effect.

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