Iceland weighs road tolls
Iceland’s government is reviewing new tolls on major roads to raise cash for infrastructure projects tied to volcanic emergency management — the plan would be overseen by a proposed state-owned infrastructure company (icelandreview.com). That idea is part of a broader rethink on balancing tourism, local needs and geologic risk funding as magma activity climbs (icelandreview.com).
The ministry’s explanatory statement earmarks the Ölfusá bridge, the Fljótagöng tunnel projects and the Sundabraut transport corridor as priority works for the proposed infrastructure company. (icelandreview.com) The bill would make the company wholly owned by the Treasury at launch while explicitly allowing later private investment, with the state retaining either a majority holding or a veto-holding minority. (icelandreview.com) The proposal authorises tolling on both new and selected existing links, naming the Hvalfjörður Tunnel, the Vaðlaheiðar Tunnel and crossings over Hornafjarðarfljót as candidates. (icelandreview.com) A government memo attached to the parliamentary submission says reintroducing tolls at Hvalfjörður could reduce the state’s contribution to certain projects from ISK 75 billion to ISK 27 billion. (icelandreview.com) The documents also flag major arterial routes such as Reykjanesbraut and Suðurlandsvegur as possible extensions for levies to distribute costs across road users. (icelandreview.com) Separately, Iceland implemented a nationwide kilometre-based road charge effective January 1, 2026, and published guidance shows the national base rate for standard passenger vehicles starts at 6.95 ISK per kilometre. (island.is)
