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
| 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) |
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.
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.
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.
| Workers | Businesses | Citizens |
|---|---|---|
| Does not apply to workers | Does not apply to businesses | Applies to all citizens |
| Actors | Funding |
|---|---|
|
National government
Employers' organisations Other social actors (e.g. NGOs) |
National funds
|
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:
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.
The consulted organisations generally supported or did not oppose the measure.
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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