No ban planned for petrol and diesel cars

The Faroese government has no plans to ban the purchase of petrol or diesel cars, according to Eyðdis Hartmann Niclasen, a government minister, in response to a question from Jenis av Rana, a member of the Løgting.

Instead of current subsidy schemes, the coalition aims to make it easier for low-income households to manage the energy transition, Niclasen said, without specifying how this would be achieved. A government policy document states that the coalition parties want to ensure low-income households can participate in the transition.

Subsidies for electric cars were reduced last year. The current maximum rebate on registration tax is 35,000 krona this year and 17,500 krona next year, before the scheme ends in 2028. Electric cars will then also be subject to registration fees.

Subsidies for electric heat pumps have also been cut. The rebate on value-added tax is 50 percent this year and 25 percent next year, with the scheme also phasing out in 2028.