Icelandic fishing firms say soaring fuel prices are putting heavy pressure on operations, especially in energy-heavy blue whiting fisheries near the Faroe Islands.
Garðar Svavarsson, chief executive of Loðnuvinnslan, told Fiskifréttir that fuel costs for pelagic vessels have jumped by 60% between February and May 2026. He warned that some companies may delay fishing trips until autumn in the hope that conditions improve.
Fuel Costs Surge for Fishing Fleet
Svavarsson said blue whiting fishing is highly fuel-intensive. Fuel already made up a large share of costs before the latest rise. He said the increase now “hits hard” for vessel operators.
The rise follows military action involving Iran and disruption around the Strait of Hormuz, a key route for global oil exports.
Fishing Firms Cannot Raise Product Prices.
Svavarsson said producers cannot pass higher fuel costs on to buyers because fishmeal and fish oil prices are set by the world market. He added that market demand is currently helping companies continue fishing despite higher costs.
He said vessels burn huge amounts of fuel during blue whiting trips. A typical trip to Faroese waters can use around 140,000 litres of fuel.
Carbon Tax More Than Doubles
The industry is also facing sharply higher carbon taxes. Svavarsson said the carbon charge on fuel rose from ISK 13.45 per litre in December 2024 to ISK 28.3 today. That equals about EUR 0.09 to EUR 0.19 per litre.
Loðnuvinnslan now plans to focus on whitefish fishing and processing during the summer. The company does not expect to resume pelagic fishing until the mackerel season starts in late August.