The tax on gasoline and diesel would be lowered to the EU minimum tax level from May 1 to September 30, 2026, the government said. The government applied to the European Commission in late March for permission to lower taxes below the EU minimum. The European Commission proposed in May that Sweden be allowed to do so for five months in 2026.
Approval from the European Council and national legislation are still required. The proposed tax reduction on gasoline is 2 kronor and 40 öre per liter. The diesel tax reduction corresponds to a price decrease of 3 kronor per liter including VAT, assuming full pass-through.
The proposal is based on an agreement between the government and the Sweden Democrats. It remains unclear when the European Council will approve the proposal and whether the full price reduction will be passed on to consumers.