Fuel prices climb despite temporary VAT cut
Tuesday 13th October 2026 on 10:15 in
Faroe Islands
Fuel prices in the Faroe Islands have risen sharply since the governing coalition removed VAT on petrol and diesel for three months this spring, KVF reports. A political discussion on the radio programme Breddin will ask whether the coalition plans further measures to ease costs.
Petrol now costs 15.56 krónur per litre and diesel 16.38 krónur per litre. Heating a home with oil costs 13,725 krónur for 1,000 litres when bought from Effo or Magn.
The coalition said in the spring that high vehicle fuel prices made it necessary to suspend VAT temporarily to support people under financial pressure. Prices have since risen further.
Finance Committee chairman Helgi Abrahamsen and Tjóðveldi MP Eirikur í Jákupsstovu will take part in the discussion, which is scheduled for 10 a.m.