A fuel tax increase of four kronor could be in store this autumn. The first change comes on October 1.
During the spring and summer, taxes on gasoline and diesel were reduced in two stages by a total of 4 kronor per litre including VAT. The tax cuts were temporary and were justified by the fact that prices had risen in the wake of the Iran war.
This would mean that the tax would return to its original level, resulting in a price increase of 4 kronor, in addition to any other price changes.
So in a way, nothing strange.
But neither of the two largest parties, the Social Democrats or the Moderates, closed the door during the election campaign to possibly extending the temporary tax cuts. They have said it depends on whether there is a continued energy crisis at that time. But regardless of the politicians' wishes, if no active decision is made, they will disappear in two stages during the autumn.
And there is a lot that speaks for that.
Long power vacuum
If the government negotiations drag on, there could be a long power vacuum. The current government would then remain in place as a caretaker government until the new one takes office. Formally, a caretaker government can make any decisions it wants, except to call new elections. In practice, however, it does not make any active budget decisions.
The practice is crystal clear. They do not take any political initiatives but only handle current government matters, says political science professor Tommy Möller.
–The idea behind it is that it shouldn't mess things up for an incoming government, he continues.
Extending the reduction in fuel taxes would normally be considered an active political initiative.
Then it is also probably the case that an incoming government does not - at least not all parts of the government - think that it should be extended, says Möller.
From October 1
On October 1, the first and smaller tax cut will disappear. This means about one kronor higher for gasoline and slightly less for diesel. The next step is December 1. Then the temporary carbon dioxide tax cut will disappear, which means 3 kronor more expensive for gasoline and diesel.
At current price levels, a litre of diesel would cost around 27 kronor from December, while gasoline would end up at around 22 kronor.
If the oil crisis worsens, however, the parties in the Riksdag, most likely the Tidö parties, could propose in a budget motion to extend the tax cut or otherwise mitigate the increase. Such a proposal could be voted through across the bloc, provided that the EU approves it.
