Swedish Fuel Tax Cut Sparks Expectation of Norwegian Rush

Sweden is set to become one of Europe's most affordable destinations for gasoline and diesel following a temporary tax reduction scheduled to take effect on Wednesday. This move is anticipated to trigger a significant increase in fuel purchases, with industry experts predicting a rush at the pumps, especially from neighboring Norwegian consumers.

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It could be temporarily empty at the pump for a few hours.

"It could be temporarily empty at the pump for a few hours," said David Sällh, head of preparedness at the industry organization Drivkraft Sverige. The temporary tax cut will place Sweden among the cheapest countries in Europe for fuel. Adjusting for the tax reduction, Sweden will rank as the second cheapest for gasoline among 35 European countries, surpassed only by North Macedonia. For diesel, Sweden will be the fifth cheapest, following countries like Bosnia, Kosovo, North Macedonia, and Poland.

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I'm going to Strömstad tomorrow to talk to our staff there.

Energy economist Claes Hemberg expressed criticism, noting that the tax reduction does not extend to electricity, which he argues should also see a decrease. Hemberg forecasts that gasoline prices could approach 13 Swedish kronor per liter this summer, the lowest level since 1999. This price drop is attributed to a series of tax cuts over five years that have reduced the gasoline tax from 8.58 kronor to 1.96 kronor per liter.

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You have our neighbors in the Nordic countries, who will naturally come over. It has an impact.

Fuel station owners across Sweden are working diligently to replenish fuel reserves in anticipation of the expected customer influx. Anders Svensson, business area manager at Brandt, which operates the Tankas chain of stations along the E6 highway in western Sweden, is preparing for increased volumes. "I'm going to Strömstad tomorrow to talk to our staff there," Svensson stated. He noted that Norwegian drivers are a significant customer base in the border regions, and previous price discrepancies have already led to long queues. Sällh added that while temporary shortages at the pump are possible, fuel supplies are sufficient, and the main challenge will be managing delivery logistics.

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It is probably only the first few days that you will see that situation. But they will be very busy, the tanker drivers, driving back and forth.