The EU opens for lower taxes on petrol and diesel

Not least the Moderates, the Christian Democrats and the Sweden Democrats have outbid each other in the election campaign about how much they should lower prices.

The EU Commission proposes that Sweden should be given the opportunity to abolish the energy tax temporarily, for at least three months.

This is evident from documents from the Commission to the EU's Council of Ministers, which TT has seen.

A decision is expected shortly from the Council of Ministers, where representatives from the 27 EU countries sit.

Three Crowns

It could reduce the tax on petrol by more than three kroner per liter if VAT is included, and for diesel by more than one kroner per liter.

When the Riksdag decided last spring on a permanent and a temporary reduction of the energy tax on petrol and diesel, the government was also instructed by the Riksdag to request the go-ahead from the EU to temporarily abolish the energy tax completely.

The government indicated three months as the appropriate period in the application.

Now an EU response is on its way.

It is happening just as M, KD, the Liberals and SD are negotiating a government program and budget requirements for a new government.

If they want to take advantage of the opportunity, it is not free, up to 4 billion in tax revenue to the treasury is lost, calculated over three months.

At the same time, the temporary tax reduction of the energy tax of approximately 1:30 per liter will in that case remain.

This means another one or a few billion for a period of three months.

Promised around

M, KD and SD have promised during the election campaign to lower the prices of diesel by nine kroner at the pump and five kroner for petrol.

This must be done partly by lowering energy taxes and partly by minimizing the so-called reduction obligation, especially for diesel.

The reduction obligation means that the fuel companies must mix biofuels, which are often more expensive than fossil fuels, into the fossil diesel and petrol.

This is done to reduce emissions of carbon dioxide and is of great importance for Sweden to reach decided climate goals and live up to the Paris Agreement.

The other day, the Energy Agency strongly advised against minimizing the reduction obligation.

If this is done, Sweden may in practice forget to try to meet the climate goals and it may put aside large investments for the production of biofuels in Sweden, according to the authority.