Soon, the temporary tax cuts on gasoline and diesel will expire, which means prices at the pump will surge. The Sweden Democrats therefore put forward an initiative at today’s meeting in the Finance Committee to extend the tax cuts. But the red-green parties, led by the Social Democrats, said no.
In the spring of 2026, the government and the Sweden Democrats decided on temporary tax reductions on gasoline and diesel to counteract the sharply rising fuel prices as a result of the war in Iran and unrest in the international oil market.
The first reduction came into effect on May 1, lowering the energy tax to the EU’s minimum level. According to the government, this equated to about one krona per liter of gasoline and 40 öre per liter of diesel, VAT included, assuming the tax cut was fully reflected in retail prices.
On July 1, an additional tax cut was introduced, this time amounting to SEK 2.40 per liter for both gasoline and diesel. Including VAT, this equaled a price reduction of three kronor per liter.
Together, the two measures made possible a price reduction of about four kronor per liter of gasoline and SEK 3.40 per liter of diesel compared with if the taxes had not been cut. Actual pump prices were also influenced by factors such as oil prices and exchange rates.
The first tax cut ended on September 30, which meant that the energy tax was raised again on October 1. The second, larger tax reduction is valid until November 30, 2026, and will thus end on December 1, according to the Swedish Tax Agency.
If no further decisions are made, this means that the tax on gasoline and diesel will be raised by another three kronor per liter including VAT from December 1, compared to today’s temporarily reduced level and assuming the full impact on consumer prices.
"Swedes Will Have to Foot the Bill"
Today, October 13, the Finance Committee held a meeting where the Sweden Democrats presented a proposal to extend the tax cuts. It was supported by the other Tidö parties, but the red-green bloc, which includes the Centre Party, voted against it.
On the Sweden Democrats’ Facebook page, they wrote that, "Now the Social Democrats and the other red-green parties have voted down the proposal, and instead it will be ordinary Swedes who have to foot the bill."
