Faroese fuel tax break set to expire

The temporary suspension of fuel taxes on petrol and diesel in the Faroe Islands will not be extended beyond its 1 August expiry, despite rising oil prices and renewed Middle East conflict, KVF reports.

A coalition agreement between the People’s Party, Union Party, and Social Democratic Party in May included a pledge to ease costs for the public amid soaring fuel prices. Finance Minister Aksel V. Johannesen subsequently proposed and secured parliamentary approval for a temporary tax exemption on petrol and diesel, effective from 16 May to 31 July.

With the exemption period now nearing its end, global oil prices have climbed again as tensions in the Middle East—including the closure of the Strait of Hormuz—intensify. Local fuel suppliers Magn and Effo have already raised prices in recent days.

KVF reports that neither the finance ministry nor fuel retailers have indicated plans to extend the tax break. Johan Dahl, speaker of the Løgting, stated there are no current plans to convene parliament before its scheduled summer session to address the issue.