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Greenlanders Outraged by Fuel Prices' Sharp Rise Amid Falling Oil Prices

KNI informs the media that it has become more expensive than expected to secure the fuel supply, and that it is therefore necessary to adjust prices. Source: Hans Meineche/Biofoto/Ritzau Scanpix

Citizens have been misled by the newly elected members of the national government. This is what Greenland’s largest labor union, SIK believes. At the same time, Greenland’s interest group for fishermen and hunters of Greenland, KNAPK expresses concern about the consequences that the price increase may entail.

It has sparked criticism that KNI announced price increases for fuel on Tuesday. The three types of liquid fuel, gasoline, diesel and kerosene, will all be increased by 85 øre per liter.

It has generated great criticism that the price of fuel per litre has increased sharply from one day to the next.

The price of fuel per litre—that is, gasoline, diesel and kerosene—has increased by 85 øre. This corresponds to a price increase of between 15 and 20 percent.

Several of the country’s politicians have expressed their dissatisfaction. The chairman of SIK, Jess G. Berthelsen, is also very dissatisfied.

During the election campaign, they (politicians, ed.) promised citizens better living conditions and increased welfare—an easier everyday life. But that is not what we see now, the union chairman tells KNR.

SIK: It is Misleading#

Jess G. Berthelsen believes that this is misleading because the political promises do not match the actions that are now being carried out.

It is misleading. During the election campaign, they (politicians, ed.) all promised that living conditions in the country would improve. That we would get more welfare—and now the exact opposite is happening, says the chairman of SIK.

He believes that the members of the government should find solutions that can offset the price increase. The union chairman finds it completely unacceptable that citizens now have to pay more for fuel.

They must find the money and cover the increase, he says.

KNAPK: It is Deeply Worrying#

Jess G. Berthelsen is not the only union chairman to criticise the price increases.

The chairman of KNAPK, Nikkulaat Jeremiassen, is also very dissatisfied. He fears that the price increases will have serious consequences for the association’s members.

“An increase of almost one krone in the fuel price will hit citizens hard—and especially our members. It is deeply worrying and frightening,” says Nikkulaat Jeremiassen.

KNI has explained to the media that it has become more expensive than expected to secure the fuel supply, and that the price adjustments are therefore necessary. KNR is working to get an interview with the company.

KNI is a self-governing company and falls under the Department of the Chairman of the Greenlandic Government.

Not a Fun Decision#

Chairman of the Greenlandic Government, Jens-Frederik Nielsen, now responds to the criticism and tells Sermitsiaq that it has certainly not been an easy decision to make:

“First of all, I would like to say that it is of course not a fun decision. Raising fuel prices is never fun, but we know that prices are tied to world market prices, says Jens-Frederik Nielsen and continues, “The way we have fixed those prices in this country for many years has sometimes been good for us, and then we know that sometimes it can go the other way. The Greenlandic Government will of course always work to make it cheaper and better to live in our country.”

It is not something that is fun for us, but it is something that we have no control over.

Question: Have you been too quick to promise that it will be cheaper when there are some things you cannot control politically?

“No, I don’t think so. The Government of Greenland has been in office for two months. The work of the Government of Greenland is about to begin, and I will always have as my goal that it should be cheaper and better to live in the country, and then there are some factors like this.”

The Chairman of the Government of Greenland does not see that KNI can switch to a more market-based pricing:

If we switch to a more market-based mechanism, there is a great risk that we will have constant fluctuations, as the world situation looks like today. There will often be price increases during the course of a year, and this is more difficult to deal with and control.

But I would say in relation to the method we use, we will constantly evaluate how we can ensure the lowest possible fuel price, because we know it is very important for living conditions in Greenland, says Jens-Frederik Nielsen.

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