Faroese fuel prices well above global benchmark
Fuel prices in the Faroes are significantly higher than Brent, a leading price benchmark for purchases of oil worldwide.
The Faroese price of gas oil averaged DKK 9.91 per litre last Wednesday. The Brent price was DKK 5.67, i.e. a price difference of DKK 4.24.
Petrol sold for DKK 10.26 per litre on average last Wednesday, DKK 4.59 above Brent.
Diesel sold for DKK 10.15 per litre on average, DKK 4.48 above the Brent benchmark.
Lack of competition a likely cause
With the increasing focus on fuel prices, Kappingareftirlitið, the Faroese Competition Authority, has started publishing its statistics on oil prices in the Faroes.
In its 2016 report on fuel sales in the Faroes, the authority pointed to a lack of competition as a likely cause of the high fuel retail prices in the Faroes relative to the purchase prices.
The report recommended measures to improve conditions for competition to make it easier for new companies to enter the market.
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Since the 2016 report was published, Kappingareftirlitið has been monitoring fuel retail prices listed on Faroese oil companies’ websites and comparing them with the Brent price.
These statistics are available here (text in Faroese only).
Read the Faroese version of this article here.
More Faroese News in English.