Swedish fuel tax cut starts Wednesday with expected Norwegian rush

A temporary reduction in taxes on gasoline and diesel in Sweden takes effect on Wednesday, which is expected to trigger a rush to the pumps especially from Norwegian customers.

Sweden becomes one of the cheapest countries in Europe for gasoline and diesel thanks to the temporary tax reduction.

David Sällh, responsible for preparedness at industry organization Drivkraft Sverige, states that pumps may temporarily run dry for a few hours.

The tax cut is described as this week's measure and is introduced on Wednesday.

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German gas station at midnight displaying reduced petrol and diesel prices after the government's 17-cent-per-litre tax cut takes effect.
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Fuel tax cut on petrol and diesel takes effect

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The German government's fuel discount took effect at midnight. Taxes on petrol and diesel drop by about 17 cents per litre for two months. It remains unclear how quickly pump prices will reflect the cut.

A government inquiry to be presented to the cabinet on Wednesday proposes higher fuel taxes and an increased reduction obligation.

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The temporary reduction in the mineral oil tax has been in effect since May 1. Consumer prices for gasoline and diesel have dropped noticeably. Federal Finance Minister Lars Klingbeil expects the oil industry to pass on the relief in full and without delay.

President Lula's government presented a bill to Congress on April 23, 2026, allowing PIS/Cofins cuts on gasoline, ethanol, diesel, and biodiesel using extraordinary oil revenues. The measure addresses a 61% rise in gasoline import costs driven by the war in Iran, per ANP data. Officials state the cuts will be partial and temporary, possibly for two months.

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Germany's federal government is struggling with a new package to address high fuel prices. The first set of measures had no effect, and petrol and diesel prices rose further. A new law could follow next week.

Rising fuel prices linked to the situation at the Strait of Hormuz are forcing Swedish airline Populair to halt flights between Örnsköldsvik and Arlanda from June 12. This leaves Örnsköldsvik airport without regular connections, with the industry warning of more such cases. Regional operators are raising prices or pausing operations.

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Fuel prices in the Philippines will see another round of rollbacks on Tuesday, April 21, led by Shell Pilipinas with cuts deeper than initial estimates. The changes take effect at 6 a.m. as Middle East conflict pressures ease.

 

 

 

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