On Tuesday, Swedish gasoline and diesel prices reached their lowest levels in five years. At the same time, prices are expected to fall even further, though with a warning that the trend could reverse later on.

On Tuesday morning, prices at major staffed gas stations dropped by ten öre per liter. Prices are now under 15 kronor, and in some places even lower, approaching below 14 kronor.

The lowest price can be found in Älmhult, where gasoline costs 13.37 kronor per liter, or 14.59 for diesel, at OKQ8.

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According to Carup, the low prices are due to crude oil having fallen to its lowest level in five years, with a barrel of Brent oil currently costing 56 dollars on the world market. At the same time, the dollar remains around 9.30 kronor, making oil purchases cheaper.

Another factor is that OPEC countries are producing more oil than is being demanded on the world market, which experts believe will lead to even more price reductions.

Long-term Price Pressure

Energy economist Claes Hemberg believes this is only the beginning, with price pressure that could last for 10-20 years.

Sweden currently has some of the cheapest gasoline prices in Europe, thanks to the government and the Sweden Democrats lowering taxes to the EU minimum. At the same time, Hemberg warns that the state will need to make up for lost tax revenues in other ways.

Soon, the EU’s emissions fee will also be introduced, which could increase the price by several kronor per liter. However, these funds may go into so-called climate funds and not into the Swedish state treasury.

– Having high taxes on gasoline has been a major source of tax income for the state, but now it’s the opposite – something of a cold shower. In the next decade, the gasoline tax will shrink rapidly. Partly because we could reach 3 million electric cars by 2030. Another factor putting pressure on the gasoline tax is that gasoline prices are expected to fall over the coming decade. Exactly how fast gasoline prices will fall is hard to say, but we could well see prices drop by another 20–30 percent, says Claes Hemberg to Carup.

On social media, the Sweden Democrats remind people of what it looked like when Magdalena Andersson (S) was Prime Minister:

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