The government and the Sweden Democrats are presenting a new crisis package worth 17.5 billion kronor in response to the :censored:6:cdd6bbaa89: energy crisis and the increased uncertainty following the conflict in the Strait of Hormuz and the war in Iran. The largest portion of the initiative goes to a temporary reduction in tax on petrol and diesel.

The proposal means that fuel prices from July 1st to November 30th could be roughly three kronor lower per litre at the pump compared to what they would otherwise have been.

– This will help mitigate the effect for households and people who need their cars to get to work, said Martin Kinnunen (SD) during the Tidö parties’ press briefing.

A total of 7.7 billion kronor is allocated for the temporary tax reduction. According to the Ministry of Finance, petrol tax is proposed to be reduced by 2 kronor and 40 öre per litre, which together with VAT could mean about three kronor lower per litre at the pump if the tax reduction is fully implemented.

For diesel, a corresponding reduction is proposed through a reduced tax of 2,400 kronor per cubic metre. This is stated in a press release on the government’s website.

Sweden has previously already lowered fuel taxes to the EU’s minimum level during the period from May to September 2026. To be able to go even further, the government applied for an exemption from the EU Commission in March.

The EU Commission has since given the green light for the proposal, but a final approval is still required from the Council of the European Union.

“Worst Global Energy Crisis We Have Seen”

At the press briefing, Finance Minister Elisabeth Svantesson (M) described the situation as exceptional due to the war in the Middle East.

– The reason we are doing this is, of course, that the war in Iran affects Sweden’s and Swedes’ economy. It is also the worst :censored:6:cdd6bbaa89: energy crisis we have seen, she said.

The Finance Minister also emphasized that the consequences are expected to be long-lasting even if the conflict eases quickly. According to Svantesson, the measures are about protecting both households and particularly vulnerable sectors from the severe cost increases.

Extra Billion for Electricity Support

The Tidö government is also adding an extra billion kronor to the electricity support that will begin to be paid out during the summer for January and February. According to Minister for Energy Ebba Busch (KD), the government intends to act swiftly to dampen the effects of the energy crisis.

– The government will not wait and wake up late, that is not how we operate. We will stand by households, said Busch.

The extra billion does not mean that households will receive more compensation than previously announced, but is meant to cover the fact that the cost of the support has become greater than estimated.

More Measures Await

So far, the government has presented measures totaling 8.7 billion kronor. The remaining parts of the extra amended budget will be announced later.

Targeted support for agriculture and the aviation industry are also reportedly being discussed within the government. The crisis package is expected to be financed through increased borrowing, which the government defends by referring to Sweden’s public finances as strong.

See the press briefing: