INFLATION

Sweden set to cut fuel tax for car owners amid market turmoil

Sweden's Prime Minister Magdalena Andersson. Photo: Alexandros Michailidis/EU Council/dpa.

Additionally, car owners will get a one-off payment of between 1,000 and 1,500 krona while families with kids will see a boost in their living allowance

Taxes on petrol and diesel are set to drop in Sweden as the country tries to take the edge off an anticipated rapid rise in fuel prices.

From June 1 to October 31, the country's fuel tax will be lowered to the EU's minimum rate, said Finance Minister Mikael Damberg, which will lower prices by about 1.30 krona ($0.13) per litre.

Additionally, car owners will get a one-off payment of between 1,000 and 1,500 krona while families with kids will see a boost in their living allowance.

The money is part of a 14-billion-krone plan to help Sweden weather the economic turmoil coming as a result of Russia's invasion of Ukraine, which will likely roil fuel markets, agricultural exports and financial markets.

It also set aside 3.9 billion krona for climate assistance, a bid to get consumers to buy climate-friendly vehicles, for example.

The measure must still be approved by lawmakers.