Fuel tax rises as drivers crowd Reykjavík area petrol stations

Drivers crowded petrol stations across the Reykjavík area on Monday evening before a temporary reduction in value-added tax on fuel expired at midnight, mbl.is reported.

The tax rose from 11 per cent to 24 per cent. The reduction had been part of the government’s measures to combat inflation.

The opposition offered earlier this summer to make the reduction permanent, but the governing parties did not support reconvening Parliament specifically to address the issue.