The Swedish government has decided to temporarily lower fuel taxes and implement additional support measures for the population and businesses in response to the significant increase in energy prices caused by the war in the Middle East.
This is reported by Finway
Support package: tax relief and compensation
The total amount of the new aid package will be around 17.5 billion Swedish kronor (approximately $1.88 billion). Some of the new measures will be announced by the government later. The main step will be a temporary reduction in fuel taxes, resulting in a decrease in gasoline and diesel prices by 3 Swedish kronor ($0.3) per liter from July 1 to November 30. The cost of this initiative is 7.7 billion kronor.
“We supported households yesterday, we support them today, and we will support them tomorrow,” said Sweden’s Deputy Prime Minister and Minister of Energy Ebba Busch.
According to Busch, another billion kronor will be allocated to compensate households for electricity costs.
Reasons for rising prices and economic outlook
Sweden is known for having one of the most stable energy systems in Europe, as electricity and heat production is almost entirely independent of fossil fuels. At the same time, consumers in the country have experienced a significant increase in fuel prices following the effective blockade of the Strait of Hormuz due to the war surrounding Iran. This has led to a reduction in global oil supplies by approximately 20% and an increase in oil prices above $100 per barrel.
Last week, the country’s government also downgraded its economic growth forecast for 2026, explaining this by the consequences of the tense situation in the Middle East for the national economy.