Monday. 04.03.2024

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.

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