Sweden to cut taxes on petrol, diesel as prices soar

STOCKHOLM, Jan 27 (Reuters) – Sweden’s government said on Thursday it had asked parliament to approve plans to cut taxes on petrol and diesel amid a surge in energy prices that has seen electricity bills and motoring costs soar.

The government said the plan would cut pump prices by around 50 ore, or around 5 cents per litre, reducing tax income in 2022 by around 2.4 billion Swedish crowns ($257 million).

Crude prices have soared since the spring of 2020, rising from around $20 per barrel to around $90.

In Sweden, diesel costs around 21.2 crowns per litre, up around 40% from this time last year, and petrol at 18.8 crowns per litre is up almost 30%.

Higher energy costs have pushed up inflation, which hit its highest level in nearly 30 years in December.

The government has already announced an electricity rebate for consumers which will cost around 7 billion Swedish crowns, revised up from an initial estimate of 6 billion.

Photo – EPA/GUILLAUME HORCAJUELO