Factsheet for measure
DK-2026-16/4323
– measures in Denmark
Proposal to reduce fuel taxes and VAT on petrol and diesel
Forslag om nedsættelse af afgifter og moms på benzin og diesel
Background information
The proposal was submitted by the Danish People’s Party (DF) in April 2026 in response to rising petrol and diesel prices following the closure of the Strait of Hormuz. The proposal aimed to reduce the financial burden on households by lowering Danish fuel taxes and VAT on petrol and diesel to the minimum levels permitted under EU rules. According to the proposal, the increase in fuel prices had significantly raised transport costs for Danish consumers, while Denmark remained among the countries with the highest fuel taxation levels in the EU. The measure was presented as a cost-of-living response to the energy price shock. However, the proposal was not supported by the government, which instead proposed a temporary increase in the commuting tax deduction.
Content of measure
The proposal aimed to reduce transport costs for households by lowering Danish fuel taxes and VAT on petrol and diesel to the minimum levels permitted under EU legislation. The measure would have applied to all consumers purchasing petrol and diesel for road transport and was not targeted at specific income groups or occupational categories. According to the proposal, the combined energy and CO2 taxes on petrol would be reduced by approximately DKK 2.68 per litre, while the corresponding reduction for diesel would be approximately DKK 1.80 per litre. In addition, VAT on petrol and diesel would be reduced by 10 percentage points. The proposal was intended to mitigate the impact of rising fuel prices following the closure of the Strait of Hormuz and to reduce cost-of-living pressures for motorists.According to the proposal, a petrol car owner driving approximately 16,000 kilometres per year would save around DKK 4,150 annually, while a diesel car owner with the same annual mileage would save approximately DKK 2,750. The measure was proposed as a permanent reduction, although the Danish People's Party indicated that alternative arrangements could be considered to secure broader political support. The proposal was not adopted.
Use of measure
As the proposal was not adopted, no beneficiaries received support and no uptake data are available. If implemented, the measure would have applied broadly to consumers purchasing petrol and diesel for road transport. According to the proposal, a petrol car owner driving approximately 16,000 kilometres per year would have saved around DKK 4,150 annually, while a diesel car owner with the same annual mileage would have saved approximately DKK 2,750. No information on effectiveness is available, as the proposal was rejected and therefore never entered into force.
Target groups
|
Workers
|
Businesses
|
Citizens
|
|
Does not apply to workers
|
Does not apply to businesses
|
Applies to all citizens
|
Actors and funding
|
Actors
|
Funding
|
National government
|
National funds
|
Social partners
Social partners' role in
designing the measure
and form of involvement:
|
Trade unions
|
Employers' organisations
|
|
Role
|
Unknown
|
Unknown
|
|
Form
|
Not applicable
|
Not applicable
|
Social partners' role in the
implementation, monitoring and assessment phase:
-
Unknown
-
Main level of involvement: N/A
Involvement
No information was identified regarding formal involvement of employers’ organisations or trade unions in the design of the proposal. The measure was introduced as a parliamentary resolution proposal by the Danish People’s Party (DF) and was not the result of a social dialogue process. No evidence was found that employers’ organisations or trade unions participated in the drafting of the proposal. As the proposal was not adopted, no social partner involvement took place in relation to implementation, monitoring or evaluation.
Views and reactions
At the time of reporting, no public statements from trade unions regarding the proposal were identified. However, the employers’ organisation TEKNIQ welcomed the proposal as a short-term response to rising fuel prices. According to TEKNIQ, many member companies depend on road transport and cannot switch to electric vehicles in the short term. While the organisation considers electrification to be the long-term solution, it argued that immediate measures are needed to address the impact of higher fuel costs on businesses and households.
Sources
