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Norway's Parliament to Vote on Fuel Tax Cuts Amid Price Surge

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Norway's Parliament to Vote on Fuel Tax Cuts Amid Price Surge
Key Points
  • The Christian Democratic Party proposes a temporary removal of road usage taxes on fuel for three months in response to high prices.
  • The Centre Party demands a broader package including compensation schemes, while the government opposes the tax cuts.
  • Political alliances are shifting, with the Centre Party potentially breaking its budget agreement by supporting right-wing proposals.

The oil price has skyrocketed as a result of the war in Iran, leading to more expensive petrol and diesel in Norway, with the pump price for diesel exceeding 28 kroner in some places yesterday. In response, the Christian Democratic Party is proposing a temporary removal of the road usage tax on petrol and diesel for three months. 28 per liter of diesel, and if removed, the price per liter will be 5 kroner cheaper for petrol and 3 kroner cheaper for diesel when VAT is included.

5 billion kroner initially. The Centre Party leader Trygve Slagsvold Vedum says that tax cuts alone are not enough for large industries like construction, public works, and transport or for people's everyday economy. The Centre Party wants a package with fuel tax cuts and a compensation scheme for people and businesses.

Analysts talk about a risk of prices at 35–40 kroner per liter. Then tax cuts are not enough for large industries like construction, public works, and transport or for the everyday economy of people.

Trygve Slagsvold Vedum, Centre Party (Sp) leader

The government says no to the proposal to cut taxes on diesel and petrol, but on Thursday afternoon, the Storting will vote on a proposal for temporary removal of the road usage tax on petrol and diesel until September 1. Political alliances are forming around the proposal, with the Centre Party saying they will vote for the Conservative Party's proposal. If the Centre Party votes with the right-wing side, they will also break the budget agreement they have with the red-green parties.

KrF has stated in a press release that they will support the Centre Party's proposals, and the Conservative Party and the Progress Party have also indicated they will support the Centre Party's proposals. 3 billion kroner. Stoltenberg is unsure if the proposals are possible to implement and says they may be in conflict with Norway's obligations, potentially constituting illegal state aid.

Left-wing parties including the Labour Party, Socialist Left Party, Green Party, and Red Party voted against the expedited processing, preferring to wait until the ordinary budget rounds in May. The vote on Thursday will determine whether the tax cuts proceed.

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