Tidö parties split over extending fuel-tax cut

Sweden’s four Tidö parties are split over whether to extend the temporary fuel-tax cut due to expire on 30 September, leaving drivers without a shared answer on how much tax they will pay after the election.

The Sweden Democrats and Christian Democrats want the reduction extended, while the Liberals oppose an extension and the Moderates have not taken a position, according to Sveriges Radio. Unless parliament changes the law, the lower rates end after September.

The government proposal estimated that the May to September measure would reduce pump prices by about SEK 1.03 a litre for petrol and SEK 0.40 for diesel if retailers pass the full tax change through. Its public-finance cost was put at SEK 1.64 billion.

An extension would keep part of that relief for drivers but require new budget funding. Letting the measure expire would restore the higher statutory rates. The four parties agreed the temporary package in spring, but their different answers leave the post-September tax level unresolved.

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