Sweden is slated to become one of the most affordable nations in Europe for both petrol and diesel as it prepares to implement significant tax reductions on July 1st. When compared against 35 other countries, Sweden’s pricing for petrol will become exceptionally competitive, with only North Macedonia offering lower rates. For diesel, the nation will rank as the fifth most affordable, trailing behind Bosnia, Kosovo, North Macedonia, and Poland.
Owners of Swedish fuel stations are currently bracing for an expected surge in demand, particularly in regions near the Norwegian border, where cross-border commuters and residents already represent a substantial portion of the customer base. David Sällh, head of emergency preparedness at the industry group Drivkraft Sverige, acknowledged that stations might experience temporary shortages. While he noted that pumps could potentially run dry for a few hours due to the rush, he assured that there is no risk of a permanent shortfall, as fuel supplies remain available despite potential delivery delays.
The government’s plan to slash taxes by three kronor per litre at the pump is scheduled to remain in force until December 31st. This measure was originally introduced as a component of an energy crisis relief package during the spring, designed to mitigate the impact of rising energy costs attributed to the conflict in the Persian Gulf. However, the policy has faced scrutiny, including from energy economist Claes Hemberg of the heat pump manufacturer Nibe, who pointed out that the lack of corresponding cuts to electricity taxes creates an imbalance.
According to projections shared by Hemberg, petrol costs this summer are trending toward 13 kronor per litre, marking the lowest price point observed since 1999. This shift is the culmination of a five-year strategy involving consecutive tax reductions, which have successfully brought the petrol tax down from 8.58 kronor to 1.96 kronor per litre.
