Iceland to Cut Petrol Tax as Costlier Oil Risks Price Outlook

Iceland will temporarily lower taxes on gasoline to help ease inflation after the war in Iran sent prices of fossil fuels soaring.

The government will cut the value added tax on petrol to 11% from 24% for four months starting May 1, Prime Minister Kristrun Frostadottir told reporters on Friday. Her cabinet will also work toward making the island less dependent on oil, the premier said.