The Swedes are going against the grain. At least when it comes to the price of gasoline. Even though the EU has tightened emissions requirements, gasoline is now getting cheaper.
At a time when the EU is tightening its emissions requirements and pushing for a greener transport sector, Sweden is going against the grain.
While Denmark and other EU countries struggle to increase sales of electric cars, Sweden has chosen a different path. Starting in the new year, the Swedish government significantly lowered the price of gasoline, a move that could have an impact on the country's green ambitions.
The EU's new emissions requirements, which came into effect on January 1, oblige car manufacturers to increase the share of electric cars in their sales. If they do not sell around 20 percent electric cars by 2025, they risk being fined billions.
Sweden has experienced a decline in electric car sales in recent years. And in 2024, the decline was as much as 16 percent. This is due, among other things, to fewer incentives – such as tax cuts – to buy electric cars and the removal of several advantages that electric cars have otherwise had in the country.
At the same time, the Swedish government has chosen to lower the tax on gasoline by a whopping 75 cents per liter. A liter of gasoline now costs an average of 10.2 Danish kroner in Sweden. Which makes the country the second cheapest place to fill up with gasoline. Only in Lithuania is gasoline cheaper.
While the price of gasoline is falling, the price of diesel is rising. But it is very little. Sweden has increased the diesel tax by 11 cents per liter, which means that diesel is now about 64 cents more expensive per liter than gasoline.
This price difference is due to the fact that the diesel tax in Sweden was already close to the EU's minimum permitted level. However, the authorities have planned a further tax reduction this summer.
From July 1, new EU regulations will come into force, requiring increased blending of renewable biofuels into petrol and diesel. This should contribute to a 10 percent CO2 reduction.
The new rules will lead to higher prices. But the Swedish government has promised to compensate with new tax breaks of 30 ore per liter for both gasoline and diesel.
Prices are therefore expected to remain roughly at the current level, even after the summer. It is still unknown what effect the lower petrol price will have on the sale of electric cars in Sweden.
