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🇸🇪 Sweden /Economy & Trade

Sweden: Cheaper to Fuel Gas Cars Than Electric After Tax Cuts

From Svenska Dagbladet · () Swedish

Translated from Swedish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • A recent tax cut on gasoline and diesel in Sweden has made it cheaper to fuel a conventional car than an electric one.
  • Public charging costs for electric cars now exceed the cost of gasoline per mile.
  • Experts suggest this short-term policy may deter people from switching to electric vehicles, despite long-term environmental benefits.

Sweden's recent decision to cut taxes on gasoline and diesel has unexpectedly made it more expensive to drive an electric car than a fossil-fuel vehicle, according to a report by Svenska Dagbladet. The tax reduction of three kronor per liter has shifted the economic balance, impacting the cost-effectiveness of electric vehicles.

The electric car is so much more expensive to purchase, that one assumes it is cheaper to drive on electricity for this to be a profitable business.

— Carl-Erik StjernvallStjernvall of M Sverige explains the economic calculation consumers make when considering an electric vehicle purchase.

For many drivers, the primary motivation for switching to an electric car is the perceived lower running costs. However, calculations now show that the cost per mile for an electric car charged at public stations averages 10.80 kronor. This is higher than the approximately 9 kronor per mile for a gasoline car consuming 0.6 liters per mile, based on current gasoline prices of around 15 kronor per liter.

It is this that is the real core of what makes people switch. For very many households, it is a question of the wallet.

— Carl-Erik StjernvallStjernvall highlights that financial considerations are a primary driver for consumers adopting electric cars.

Carl-Erik Stjernvall from the National Association of Motorists (M Sverige) expressed concern over the government's short-sighted policy. He noted that while home charging remains cheaper, the increased cost of public charging negates the financial advantage for many. Stjernvall advises potential car buyers to consider the current situation carefully, acknowledging that tax policies can change, especially after the upcoming election, and external factors like global oil prices can also fluctuate.

You might disregard the climate but still see that this is cheaper.

— Carl-Erik StjernvallStjernvall notes that cost savings can be a stronger motivator than environmental concerns for some consumers.
DistantNews Editorial

Originally published by Svenska Dagbladet in Swedish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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