Sweden The Swedish government intends to reduce fuel taxes and provide subsidies to car owners of at least SEK 1,000

Swedish the government introduced on Monday a multi-part support packagewhich seeks to alleviate the shock of rising fuel and electricity prices.

The support package is based on the war in Ukraine and the resulting rise in prices.

The aim is, for example, to temporarily reduce taxation on petrol and diesel between June and October.

In addition, there will be separate compensation for car owners.

Taxes reduced to the minimum level allowed by the EU. According to the government, the price of petrol and diesel at the pump would fall by about SEK 1.30, or about 12 cents per liter. Taxation is easing slightly even before this in May.

A separate compensation of SEK 1,000, or just under € 95, would come to private individuals who own a car. In addition, those living in certain sparsely populated areas would receive SEK 500, or about EUR 47 per car owner.

The Treasury minister Mikael Damberg stated at a press conference that the war in Ukraine will inevitably be reflected in Sweden as well.

“When a war is fought 700 kilometers from our borders, I want to be clear that the war is also affecting us financially. We must be prepared to persevere. The situation is challenging and my message is that this will be the case for some time to come, ”he said.

Fuels related to prices In addition to the measures, the government is allocating additional funds to the so-called climate bonus scheme, which supports the renewal of the car fleet. The buyer of an electric car can still receive a subsidy of SEK 70,000, or about EUR 6,600, to buy an electric car.

The government will also temporarily increase housing benefits for families with children and continue the previous electricity price support in central and southern Sweden.

The total cost of the current actions is estimated at SEK 14 billion, or about EUR 1.3 billion.

In addition, the Swedish government is planning longer-term measures such as reforming the local commute reduction.

From Damberg He was asked at a press conference, among other things, whether he was concerned that measures such as lower fuel taxes would make it more difficult for Sweden to meet its climate targets.

Damberg was not worried about this. He recalled, among other things, that fuel prices were now exceptionally high and that measures included support for electric cars.