The Swedish Ministry of Finance has drafted a bill to further lower taxes on petrol and diesel. This measure is a response to rising fuel prices caused by geopolitical instability, specifically citing conflicts in the Middle East and a war in Iran.
The Swedish Ministry of Finance has submitted a draft bill proposing a further temporary reduction of tax on petrol and diesel in response to rising fuel prices, with the measure set out in memorandum Fi2026/01131 published on 13 May 2026.
The proposal would reduce the carbon dioxide tax on petrol and diesel by SEK 2.40 per litre for the period 1 July to 30 November 2026.
It is intended to offset higher fuel prices linked to geopolitical developments, described in the draft bill as the ongoing conflict in the Middle East, while the accompanying memorandum refers to an ongoing war in Iran.
According to the proposal, the reduction forms part of a broader fuel tax framework in which petrol and diesel have already been reduced to the EU minimum tax level for the period 1 May to 30 September 2026. Consequential amendments are also proposed for the tax reduction applicable to agricultural diesel consumed during the period 1 July to 31 December 2026.
The legislative changes are scheduled to enter into force in stages on 1 July 2026, 1 October 2026 and 1 December 2026.
Earlier, the Swedish parliament (Riksdag) 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.
