Sweden to Increase Energy Subsidies and Cut Fuel Taxes
The Swedish government has unveiled a package of measures to support households facing rising energy costs as a result of the war with Iran.
The additional spending amounts to SEK 7.7bn ($730m) and builds on the SEK 80bn ($7.6bn) already approved in last year’s budget for 2026. Finance Minister Elisabeth Svantesson said the aim was to “mitigate the impact on households”.
A temporary increase in electricity subsidies will cost SEK 2.4bn ($230m), while the reduction in fuel taxes is estimated at SEK 1.6bn ($150m). The government has also asked the European Union to approve a further cut in fuel taxes worth around SEK 8bn ($760m).
Oil prices have risen sharply following US and Israeli attacks on Iran, adding to concerns about inflation, slowing economic growth and higher interest rates.
The measures come ahead of September elections. The government is trailing in the polls behind the left, which plans to raise taxes, while the cabinet wants to support households, jobs and businesses while maintaining budget discipline.