Swedish government rejects fuel tax hikes proposed for climate goals

Sweden's government has refused to implement recommendations from an expert commission tasked with finding ways to phase out fossil fuels by 2030. The proposals, designed to help the country meet its climate goals, included significant increases in taxes on gasoline and diesel.

The commission, established in 2024 by Prime Minister Ulf Kristersson's right-wing coalition, also suggested increasing the mandatory share of biofuels and low-carbon alternatives in fuel supplies. To encourage a shift towards electric vehicles, the experts proposed higher subsidies for EVs and reduced electricity taxes for households.

However, the government, which has prioritized lowering fuel taxes since taking office in 2022, found the commission's suggestions incompatible with its policies. Finance Minister Elisabeth Svantesson stated that raising fuel taxes would be a "bad idea" given the current high prices, which are already straining citizens' finances. She noted that the commission's mandate was set before recent global events like Donald Trump's US presidency and the war in Iran.

The government had previously implemented temporary reductions in fuel taxes in response to the energy crisis. The expert commission's report comes less than six months before Sweden's general election on September 13.

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In this situation, gasoline prices are so high that they make life difficult for people. It would be a bad idea to increase them further.