Faroese government secures cheaper fuel deal for public vehicles

Public vehicles in the Faroe Islands will receive discounted petrol and diesel from fuel suppliers Magn and Effo, following a government tender, Kringvarp Føroya reports.

The Faroese Tax Authority (Gjaldstovan) selected both companies to supply fuel at reduced rates for 508 government-owned cars and vans, covering 80 public agencies. While the authority estimates that about a quarter of the fleet consists of electric vehicles, the majority still rely on petrol or diesel.

The tender focused solely on price, with both Magn and Effo submitting winning bids. However, the exact discount rates remain undisclosed. The Tax Authority cited commercial confidentiality, stating that the details could be considered “operational and business conditions of significant financial importance” to the suppliers.

The contracts—valid for three years from 1 May—also include discounts on car washes. The Tax Authority will later calculate the total savings compared to standard pump prices.

The announcement comes amid heightened public attention on fuel costs, as the government considers temporary tax reductions on petrol and diesel to ease financial pressure on private drivers.