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EU PolicyWatch

Database of national-level policy measures

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-2026-18/4303 – measures in Sweden

Announced temporary reduction in tax on petrol and diesel to the EU minimum level

Aviserad tillfällig sänkning av skatt på bensin och diesel till EU:s miniminivå

Country Sweden , applies nationwide
Time period Temporary, 01 May 2026 – 30 September 2026
Context Cost of Living Crisis
Type Other initiatives or policies
Category Measures to prevent social hardship
– Other
Author Sydney Mc Loughlin Laewen (Oxford Research)
Measure added 15 June 2026 (updated 16 June 2026)

Background information

The temporary reduction in fuel taxation was introduced in response to rising global energy prices following the conflict in the Middle East, which led to increased oil prices and higher transport costs for households and firms. The policy objective is to mitigate the negative effects on purchasing power and production costs, and to support economic stability during a period of uncertainty.

The measure is framed within Sweden’s compliance with the EU Energy Taxation Directive, which sets minimum tax rates for energy products. The government proposes to temporarily reduce Swedish fuel taxes to these minimum levels. The measure is presented in a Government Bill, as part of a broader package of energy-related interventions, justified as a rapid and administratively feasible response to rising fuel prices.

Content of measure

The measure consists of a temporary reduction in the energy tax on petrol and diesel to the minimum levels permitted under EU law for the period 1 May to 30 September 2026. The reduction applies broadly to all users of petrol and diesel in Sweden, including households and businesses. Following the reduction, total taxation (energy and carbon tax) aligns with EU minimum levels, approximately SEK 3.97 (approx. €0.37) per litre for petrol and SEK 3,64 (approx. €0.33) per cubic metre for diesel.

The measure does not impose eligibility criteria in a targeted sense; rather, it is a general tax reduction automatically applied through fuel pricing, benefiting all consumers and firms purchasing eligible fuels.

Use of measure

As a tax measure, the policy potentially reaches a very large share of the population and business sector, including most households using private vehicles and firms reliant on transport or fuel-intensive operations. No official estimate of the number of beneficiaries has been published, but the coverage can be considered nationwide.

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
Employers' organisations
Other social actors (e.g. NGOs)
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Consulted
Form Not applicable Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown

Involvement

A number of social partners from the employer side were involved through the consultation process. These included organisations such as the Confederation of Swedish Enterprise (Svenskt Näringsliv), Transportföretagen (Swedish Transport Enterprises), and Mobility Sweden, representing key sectors affected by fuel costs. Sector-specific employer organisations, such as the Swedish Association of Road Transport Companies (Sveriges Åkeriföretag) and the Federation of Swedish Farmers (LRF), were also consulted.

Views and reactions

The consulted organisations generally supported or did not oppose the measure.

Sources

  • 13 April 2026: Extra ändringsbudget för 2026 – Sänkt skatt på drivmedel samt el- och gasprisstöd (www.regeringen.se)

Citation

Eurofound (2026), Announced temporary reduction in tax on petrol and diesel to the EU minimum level, measure SE-2026-18/4303 (measures in Sweden), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/SE-2026-18_4303.html

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