The price of petrol and diesel may rise by six kroner per liter when the expanded system for trading emission rights is introduced, writes Swedish daily newspaper.
The Tidö parties have promised to compensate for the increase, but it is not certain that this will happen.
At the turn of the year, the reduction obligation in Sweden was sharply reduced, which led to the lowest petrol prices in the Nordics – and periodically among the lowest in the whole of Western Europe.
But in order to reach the EU’s climate goals, the biofuel mix needs to be increased to 20 percent, which would drive up the price by approximately one kroner per liter.
Now prices are also expected to rise further when the EU’s extended system for trading emissions rights (ETS 2) is introduced.
Six kroner more expensive
The system, which will come into force in 1.5 years, also covers fuel for cars and heating buildings – and can raise petrol and diesel prices by another kroner and a half per litre.
One German Research Institute warns, however, that the increase could be four times higher – up to six kroner a litre, writes SvD. The reason is that the electrification of cars is going slower than expected, which increases the demand for emission rights and thus the prices.
Difficult to compensate
The Tidö parties promise to compensate motorists when the system comes into force, but how this will be done is unclear. In their climate action plan, the parties write that this can be done through lower fuel tax or with money from the EU’s social climate fund.
However, there is not much room left for that, says Jessica Alenius, CEO of Drivkraft Sweden SvD.
– We are already close to the EU’s minimum level for fuel taxes, especially for diesel. They cannot be lowered much more. Then the government has to compensate for the higher petrol and diesel prices in some other way, she says.