The Parliament Lowers the Gasoline Tax – But V and M Voted NO

The Swedish Parliament has decided on a temporary reduction of the fuel tax, a measure expected to be felt immediately at the pump this summer. The action applies from May through September and covers both gasoline and diesel.

At the same time as the energy situation in the EU has quickly worsened due to the war in Iran and the disruptions in the Strait of Hormuz—a crucial transport route through which a large portion of the world’s oil passes—concerns about fuel shortages and rising fuel prices within the union are increasing. The situation is further exacerbated by the sanctions against Russia, which have severely limited energy imports from that direction.

Against this background, Parliament has now chosen to act in order to dampen the effects for households through measures aimed at fuel costs.

For gasoline, the tax will be reduced by one krona per liter, while diesel will see a reduction of 40 öre per liter. Aviation fuel is also included in the tax cut. At the same time, the decision means reduced revenue for the state, with the cost estimated at about 1.6 billion kronor.

V and MP: Defending the Climate Transition

The decision did not receive support from all parties. The Left Party and the Green Party voted no and criticized the measure for being costly and ineffective.

They argue that a fuel tax cut risks increasing emissions and complicating the climate transition, while also not targeting support precisely enough to those households most in need.