The Swedish parliament (Riksdag) has approved a draft bill to temporarily reduce petrol and diesel taxes and introduce household electricity and gas subsidies for early 2026 as part of an additional amending budget.
The Swedish parliament (Riksdag) has adopted a draft bill proposing a temporary reduction in tax on petrol and diesel, aimed at offsetting rising fuel prices linked to the ongoing conflict in the Middle East. The measure forms part of an additional amending budget approved by the Riksdag.
The proposal also includes the introduction of temporary subsidies for electricity and gas for households covering January and February 2026.
This announcement was made on 22 April 2026.
Under the plan, the energy tax on petrol and diesel will be reduced by SEK 0.82 per litre and SEK 319 per cubic metre during the period from 1 May to 30 September 2026. For petrol and diesel of environmental class 1, taxation will be reduced to the minimum level permitted under the Energy Taxation Directive. Energy tax on alkylate petrol will also be reduced as far as possible without falling below the minimum tax level. These measures will require amendments to the Energy Tax Act.
In addition, funding will be allocated for temporary electricity and gas subsidies for households during the first two months of 2026.
The fiscal impact of the package is estimated to reduce central government revenue by around SEK 1.56 billion and increase expenditure by approximately SEK 2.4 billion in 2026, resulting in a weakening of general government net lending and the budget balance by about SEK 4.1 billion.
The government stated that the combination of the ongoing conflict in the Middle East, its impact on fuel prices, high electricity prices, and severe weather contributing to elevated household heating costs in early 2026 constitutes sufficient grounds for an additional amending budget. The Riksdag has not made any different assessment.
The bill will now be implemented in accordance with the legislative process.
Earlier, Sweden proposed a temporary cut to petrol and diesel taxes from May to September 2026 to ease rising fuel costs caused by the war in the Middle East, with adjustments for agricultural diesel and future tax indexing.
