The Storting approved the tax cut after the Christian Democratic Party (KrF) proposed a three-month suspension of the road usage tax, which currently stands at 3.77 kroner per liter for gasoline and 2.28 kroner per liter for diesel. The measure is estimated to cost around 2.5 billion kroner initially. The vote followed a surge in global oil prices linked to the conflict in Iran, which has led to higher fuel costs for Norwegian consumers and businesses, according to reports.
The proposal gained a majority when the Center Party (Sp) broke with the red-green parties on March 26 and voted alongside Høyre, the Progress Party (Frp), and KrF. The Labor Party, Socialist Left Party, Green Party, and Red Party voted against expedited processing. The tax cut is expected to bring fuel prices down to between 16 and 24 kroner per liter, according to the Storting's decision.
Our clear starting point is that they last until September 1.
Høyre leader Ine Eriksen Søreide stated that cheaper gasoline and diesel was not her party's 'preferred method' to help people and businesses, and confirmed that Høyre does not want to extend the tax cut beyond September 1. According to NRK, Søreide described the cuts as lasting until that date and emphasized that Høyre would replace such measures with broader tax relief in its alternative budget.
Frp deputy leader Hans Andreas Limi announced that his party will fight to extend the tax cut, initially through the end of the year. According to NRK, Limi described Frp's strong disagreement with Høyre's position and expressed hope that Høyre would join in further reductions. He argued that Norway's high fuel taxes should be reduced and that continuing the existing cut is easier than implementing new measures mid-year.
For us, it is important that in our alternative budget we can replace that type of measure with tax relief.
Center Party leader Trygve Slagsvold Vedum criticized Høyre for ruling out extended cuts after September 1. According to NRK, Vedum described Høyre as closing its eyes to the difficulties faced by the construction and trucking industries. He also warned that analysts see risks of fuel prices reaching 35-40 kroner per liter, suggesting that tax cuts alone may not suffice. Vedum called for a compensation package similar to Germany's fast-working committee on fuel prices.
Prime Minister Jonas Gahr Støre announced that the government will introduce fuel-saving measures if the war in Iran leads to acute shortages. Finance Minister Jens Stoltenberg said the proposals would increase use of oil money by 3.3 billion kroner and expressed uncertainty about feasibility, citing potential conflicts with state aid rules and the CO2 tax system. According to Stoltenberg, the government must avoid that a few hundred kroner in reduced fuel tax is eaten up by thousands of kroner in increased interest rates. He also noted that the government had wanted to wait until May to propose measures in the revised national budget.
I heard the finance minister say that it is a matter of a few hundred kroner. Does the finance minister believe that for these contractors, the trucking industry, fishermen and farmers, who are forced to use a lot of fuel, it is a matter of a few hundred kroner?
Sp's Geir Pollestad challenged Stoltenberg on whether he believes the tax cut only amounts to a few hundred kroner for heavy users like contractors and farmers. MDG's Ingrid Liland warned that if Sp breaks the budget agreement, it would be difficult to find future compromises. According to Liland, if Sp breaks, it is difficult to imagine that they will find more budget agreements. The political debate continues over whether the tax cut will be extended and whether it complies with EU state aid rules and Norway's CO2 commitments.
If Sp breaks, it is difficult to imagine that we will find more budget agreements.
We cannot run the country in this way.