Oil Companies Admit Premature Price Increases Skip to content

Oil Companies Admit Premature Price Increases

Three Icelandic oil companies, N1, Olís and Skeljungur (Shell Iceland), lowered the liter price of gasoline by ISK 12.50 (USD 0.10, EUR 0.07) yesterday, admitting that it was premature increasing the price immediately after Iceland’s parliament passed a bill on higher fuel tariffs.

Oil tanks by the harbor. Photo by Páll Stefánsson.

A statement from N1 reads that the company had now been informed that the way they interpreted the collection method of the higher fuel tariffs had been inaccurate, mbl.is reports.

The company regrets the mistake, that the public had been charged prematurely, because the price of fuel is high enough as it is.

N1 has calculated that the premature charges amounted to approximately ISK 9 million (USD 70,000, EUR 50,000) and will donate that money to charity.

The donations will go to the Icelandic charities the Interest Organization of Households, Umhyggja, which supports chronically ill children, Maedrastyrksnefnd, which distributes food to families in need, and Family Aid.

According to RÚV, the other two companies will instead repay those who purchased gas at a prematurely high price, provided they have the receipts.

A bill on increased tariffs on alcoholic beverages, tobacco, gasoline and oil was passed on May 29. The price of gas will increase later this month and the immediate increase of the liter price of diesel oil was not deemed premature.

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