The Swedish government has temporarily reduced the VAT on food from 12% to 6% until the end of December 2027, a measure that includes takeaway food. Swedish authorities halved food VAT and cut fuel taxes on Wednesday, leading to long queues at shops and petrol stations. Billions of Norwegian kroner flow across the border into Sweden, with an expected increase due to Swedish tax cuts.
The VAT reduction is already noticeable in Hemavan, where Norwegians are shopping extra much ahead of Easter. Tourism and Norwegians who travel there for the day account for 75% of the turnover at one of the stores in Hemavan. Cross-border trade is becoming larger, with people wanting to shop cheaply.
This cross-border behavior is partly driven by sharp fuel price increases in Norway recently. The increase in fuel prices is due to the war in the Middle East, which is pushing up oil prices. Petrol prices in Norway are nearing 25 kroner per liter, while in Sweden they are around 16 kroner for petrol and 21 kroner for diesel.
Norwegians are using digital tools to navigate regional price variations. Petrol in Arendal was under 20 kroner per liter, while in Grimstad it was over 25 kroner per liter. Nine out of ten of the cheapest petrol stations in Norway were in eastern Agder as of Wednesday at 10:30.
There are many Facebook groups and apps like DrivstoffAppen in Norway where people share tips on cheap fuel locations. 3 million Norwegians have downloaded the DrivstoffAppen app. The Swedish border impact is amplified by Easter traditions.
Many Norwegians travel to Sweden on Maundy Thursday because shops are open there, unlike in Norway. It has become an Easter tradition for many Norwegian car enthusiasts to spend the day in Strömstad, Sweden. A similar dynamic is unfolding on Germany's eastern border.
Poland is preparing to curb a surge of German 'petrol tourists' crossing the border to fill up their tanks. Thousands of German motorists are driving into Poland where prices are lower. 28 per litre cheaper in Poland than in Germany.
Most German motorists in Poland are filling up with diesel, which is about 28 cents per litre cheaper on the eastern side of the border. Polish authorities have responded with measures. Polish authorities have said the influx of German motorists is leading to fuel shortages for residents, with some stations forced to close after running dry.
Some petrol stations in Poland are implementing volume restrictions or banning Germans from filling jerry cans. Mayors in several border towns have accused German motorists of 'squirrelling away' fuel, exacerbating supply problems. Some stations are voluntarily implementing volume restrictions, limiting the amount of fuel sold per car to maintain supply for residents.
Other stations have banned Germans from filling up anything other than their vehicles. The German context is defined by high prices. Germany has some of the highest fuel prices in Europe due to government policies aimed at reducing carbon emissions.
27 for diesel. Political opponents in Germany have called for price caps, but Berlin has responded cautiously, announcing petrol stations may raise prices no more than once per day. Polish policy details include maximum prices and tax relief.
79) for diesel. A reduced 8-percent VAT on fuel took effect and will remain in place through April 30. The new pricing system requires fuel retailers to stay at or below a daily maximum price set by the energy ministry, with fines up to PLN 1 million (EUR 233,000) for violations.
A separate regulation cut excise duty on fuels through April 15. Warsaw is promising tax relief on fuel before the Easter break, which could intensify the flow of traffic across the River Oder. On-the-ground observations present a mixed picture of fuel tourism.
On Wednesday, border-area gas stations in Poland saw an uptick in foreign drivers, especially from Germany, following the introduction of maximum fuel prices and a lower VAT rate. At stations in Lubieszyn near the German border, short lines formed around midday, with two or three cars waiting at each pump. At one Orlen station in Lubieszyn, about 20 vehicles with German license plates filled up over a 15-minute period.
Station staff in Kostrzyn nad Odrą and Słubice reported a slight increase in German customers, but no unusually heavy traffic. There were no signs of large-scale 'fuel tourism' on Wednesday, according to state news agency PAP. Reports vary by location.
23) per liter. In Zgorzelec on the German border and in the Podkarpacie region near Slovakia, residents and station employees reported no noticeable increase in foreign traffic. One station in Dukla said traffic had even eased slightly in recent days.
Recent price data shows significant drops in Poland. 03). Sweden's fuel policy contrasts with Norway's stance.
Sweden reduced fuel taxes in 2024 and is considering further cuts if the war worsens. In Norway, Finance Minister Jens Stoltenberg said Norway has no plans to introduce subsidies or lower taxes in response to rising oil prices. The Norwegian industry is feeling the pinch.
Fuel accounts for about 30% of operating costs for Norwegian truck owners. German consumer tools are evolving in response. ADAC, the German motoring association, publishes regularly updated comparisons to help drivers decide if cross-border trips are worthwhile.
German newspapers have begun publishing detailed maps showing where cross-border trips are financially worthwhile. The exact economic impact of the Swedish VAT reduction on food and fuel taxes on cross-border trade with Norway remains unclear. It is also unknown whether the Norwegian government will reconsider its stance on not lowering taxes in response to rising fuel prices.
The effectiveness of Poland's measures, such as maximum prices and volume restrictions, in curbing 'fuel tourism' and ensuring supply for residents has yet to be determined. Local tensions have emerged alongside government stances. Mayors in Polish border towns have accused German motorists of exacerbating supply problems, while Norwegian politicians debate tax harmonization.
The Swedish border stores report both economic benefits and operational challenges due to the surge. How long the current surge in cross-border shopping for fuel and food will last, especially after the Easter period, is uncertain. The broader environmental or policy implications of increased cross-border fuel shopping on carbon emissions and government tax revenues also remain to be seen.