Competition Restraints in the Fuel Market – Opinion for the City of Reykjavík

The opinion calls on the City of Reykjavík to take steps to reduce the barriers to competition in the Icelandic fuel market that result from its current policy and practice regarding petrol stations.

In the opinion of the Competition Authority, the City of Reykjavík's policy and implementation are likely to hinder competition. The city's plan provides for resisting an increase in the number of petrol stations in the city and assumes that their number will not increase. Although the underlying objective is entirely legitimate, there is strong evidence to suggest that the methods the city has chosen to achieve this aim have little or even the opposite effect.

This opinion is one of four opinions published in connection with a market study of the fuel market, in which recommendations are made to public authorities to promote improved competitive conditions in the fuel market.