Experts warn of continued high fuel and electricity prices this winter, not least due to the crisis in the Middle East. In addition, food prices are expected to rise, in part because of an extra severe variant of the El Niño weather phenomenon this year.
The government has already temporarily lowered taxes on petrol and diesel twice this year, after approval from the European Commission, to counter rapidly rising prices.
“Depends on”
Prime Minister Ulf Kristersson (M) cannot say whether the temporary tax cuts will be extended if he wins the election this autumn.
"The decision ultimately depends on what happens in the region (the Middle East) and the price picture. Right now it's a bit unclear, I would say, but we have no new decisions," Kristersson tells TT.
Finance Minister Elisabeth Svantesson (M) emphasizes that the EU Commission has granted Sweden only temporary approval.
It is a protracted crisis and the longer it goes on, the more difficult it could be with energy prices and other things going forward, she says, adding:
I follow this issue every day and am prepared to do more if required, but what we have done so far is very well balanced.
“A lot can happen”
The government has also reduced food VAT from 12 to 6 percent from April 1 this year, in order to keep costs down for households. The decision is valid until December 31, 2027.
"Basically it's temporary, but a lot can happen. Something I've learned over the years is that turbulence in the world can mean there's a need for support, but you also have to balance it against other investments," says Elisabeth Svantesson, adding that she "doesn't rule out low food VAT in the future."
