Price of fuel in Iceland has doubled in five years

The cost of fuel in Iceland has more than doubled in five years, new data reveals. At the same time average wages have gone up by 34 percent.

This means that the cost of fuel weighs ever-heavier on household budgets and that ISK 5,000 gets a driver less far than ever.

Nobody in Iceland (or indeed the rest of the world) can have failed to notice fuel prices rising constantly; but many may have forgotten that a litre of petrol cost ISK 112.7 at the beginning of 2007 and now costs ISK 242.9 on average. Diesel has gone up even more; or from ISK 113 to ISK 253.5 – which is ten krónur more than a litre of petrol.

This article deliberately does not convert krónur into euros, because the króna exchange rate has changed so much in five years due to the financial crisis. Instead there is a comparison.

RÚV reports on a hypothetical car which uses ten litres of petrol for every 100 kilometres driven. On 15,000 kilometres per year, that means an annual fuel bill of ISK 364,320 now instead of ISK 169,000 at the beginning of 2007…115 percent different.

At the beginning of 2007 ISK 5,000 of petrol in the above car would get the driver from Reykjavík to Hornafjörður (Höfn). In 2009 that money got the driver to Fagurhólmsmýri and in 2010 the car would have made it to Kirkjubæjarklaustur. Now ISK 5,000 only gets the hypothetical car as far as Vík í Mýrdal. Which is half as far as five years ago. See a map of south Iceland here.