Sweden's government announces 17.5 billion kronor energy crisis package

"The package, announced in a press conference on May 13th, includes reduced tax on petrol and diesel as well as state support for cheaper public transit. The aid package of 17.5 billion kronor is due to the global energy crisis. "The reason we are doing this is obvious," said Finance Minister Elisabeth Svantesson of the Moderates. "The war in Iran is affecting the economy of Sweden and the Swedes. It is also the worst global energy crisis we have seen.""

"The 17.5 billion crisis package is taking the form of an extra budget amendment. The idea is that the crisis package will be hammered out by parliament before its summer recess. The measures that the Tido parties have discussed are further reductions in fuel taxes, support for public transport, support for farmers for, among other things, higher fertiliser prices and support for aviation. The further reduction of taxes on petrol and diesel is for five months, from July 1st to November 30th."

"The government expects that this will reduce the price by three kronor per litre compared to what the price would otherwise be. "This will have significant effects for households and people who need a car to get to work," said Martin Kinnunen of the Sweden Democrats. The measure will cost the treasury 7.7 billion kronor. The EU Commission has approved the reduction, but the Council of Ministers must also say yes, which is expected to happen shortly."

"One billion will also be spent on "topping up" the electricity subsidy that will start being paid out in June for January and February. However, the billion does not mean more money for households, but rather that the subsidy has become more expensive than previously estimated. The measures presented total 8.7 billion kronor. How the rest of the 17.5 billion will be used will be presented later."

A 17.5 billion kronor aid package announced on May 13 reduces taxes on petrol and diesel and provides state support for cheaper public transit. The package is an extra budget amendment intended to be finalized by parliament before the summer recess. Fuel tax reductions apply for five months from July 1 to November 30 and are expected to lower fuel prices by three kronor per litre compared with what they would otherwise be. The government also plans support for farmers facing higher fertiliser prices and support for aviation. The treasury cost for the fuel measure is 7.7 billion kronor, and the EU Commission has approved the reduction while the Council of Ministers is expected to approve shortly. An additional one billion kronor tops up an electricity subsidy that begins in June for January and February.

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