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The Swedish government announced on Monday plans to temporarily reduce taxes on petrol and diesel in response to rising energy costs linked to the ongoing conflict in the Middle East.
The proposal, if approved by parliament, would take effect from May 1 through the end of September, with fuel taxes initially lowered to the minimum level permitted within the European Union.
Prime Minister Ulf Kristersson said global developments, particularly tensions in the Middle East, are placing significant pressure on Sweden’s economy.
“All parties need to recognise that what is happening in the Middle East and the rest of the world is putting Sweden’s economy to the test,” Prime Minister Ulf Kristersson told a press conference.
Government estimates indicate the measure could lower petrol prices by about one krona ($0.1) per litre and diesel by roughly 0.4 krona per litre.
Authorities also noted that they may seek approval from the European Commission to implement deeper tax cuts if necessary. In addition, the government plans to introduce subsidies to help households cope with rising electricity costs.
Oil prices surged earlier in the week after warnings from the United States and Israel that the conflict with Iran could persist for weeks, disrupting shipments through the Strait of Hormuz.
Jimmie Akesson, leader of the Sweden Democrats party, said reducing fuel costs is essential for many residents and could also help ease inflationary pressure.
The proposed measures come as the government prepares for parliamentary elections scheduled for September.
