World oil prices fell 30 percent – the price of petrol rose by two krónur

The world price of crude oil has fallen by nearly a third since the summer. Over the same period, a litre of petrol at Icelandic pumps has gone up by two krónur.

“People have to understand that price cuts come a very long way,” says a spokesman for one of the oil companies. “They travel by sea, go through customs and need time to adjust to Icelandic conditions. That can take years.”

Asked why price rises on world markets reach the pumps the same day, he doesn't hesitate: “They come by air.”

Economists call the phenomenon “rockets and feathers”: prices shoot up like a rocket but float down like a feather. “In Iceland the feather has never been seen to land,” says a competition expert. “We believe it is still airborne, somewhere over the Atlantic.”

It was noted that every petrol station in the capital area changed its price in the same minute yesterday, down to the last eyrir. The companies say it was a coincidence. “We don't follow the other companies' prices at all,” says the spokesman. “We just have a very strong intuition department.”

Margrét (44) from Reykjanesbær checks world oil prices every morning. “When they go up I fill up straight away, before the rise reaches the pump,” she says. “When they go down I wait for the cut. I've been waiting since 2015.”

The oil companies have now published guidance for consumers who want to benefit from the price cut immediately. It recommends driving to Rotterdam.

The companies promise, however, that prices will be reviewed as soon as conditions allow. The next review is scheduled for when world prices rise again.