Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure SE-2022-32/2352 – measures in Sweden
|Country||Sweden , applies nationwide|
|Time period||Temporary, 01 August 2022 – 31 December 2022|
|Context||War in Ukraine|
|Type||Legislations or other statutory regulations|
Responses to inflation
– Support for fuel expenses
|Author||Anna-Karin Gustafsson (Oxford Research) and Eurofound|
|Measure added||19 May 2022 (updated 20 June 2022)|
The effects of the increasing fuel prices are causing hardship especially in areas with vast distances and low access to public transport. The government of Sweden has put forward a law proposal to the Council on Legislation [Lagrådet]. The law is proposed to enter into force on 1 August 2022 and to expire at the end of December 2022, but has not been passed yet. With the aim of mitigating the effects of increasing fuel prices due to the war in Ukraine, the government of Sweden has proposed that owners of private cars receive a compensation.
The Swedish government proposes support for those affected by high fuel prices by granting them a compensation of SEK 1,000 (€96). Where the authorities have access to bank account details, the payment will take place automatically through a bank deposit. If not, the eligible person will receive a withdrawal slip.
The prices are particularly noticeable for people living in rural and sparsely populated areas. Thus, there is high dependency on private vehicles to commute to work and education. In these areas, each eligible person is to receive 50% more in compensation than in the rest of the country, accounting to SEK1,500 (€145).
To be eligible for the compensation, the car must have been registered to the person on 28 February of 2022. The higher compensation also requires that the person was registered in one of the specified municipalities on 28 February 2022.
The fuel compensation proposal for individuals was first announced on 14 March 2022 as part of a package of measures to address electricity and fuel price increases resulting from the invasion of Ukraine. The Legislative Council will now examine the proposal. The aim is for payments to be made in August-September of 2022.
The government estimates that a total of around 3.7 million car owners will receive compensation.
|Does not apply to workers||Does not apply to businesses||Applies to all citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
The umbrella organisations for social partners have left statements regarding the proposed measure.
Both the Confederation of Swedish Enterprise (Svenskt Näringsliv) and The Swedish Confederation of Professional Employees TCO advice against the proposal. The employers’ organisation argue that the direct transfers is not impactful as it does not support enterprise and does not address the underlying problem. TCO argues that the tool is overly blunt and not sufficiently targeted to the households’ de facto use and need of the car.
Eurofound (2022), Compensation for owners of private cars to mitigate hike in fuel prices, measure SE-2022-32/2352 (measures in Sweden), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/SE-2022-32_2352.html
30 January 2023
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.