European Union leaders meet in the context of the US-Israeli war against Iran that is consuming the Middle East, and its consequences on energy prices and security.
Sweden’s government said on Monday it was proposing to lower taxes on petrol and diesel temporarily, as energy prices soar due to the war in the Middle East.
If passed by parliament, the proposed tax cut would go into force on May 1 and last until the end of September, and as a first step, would be lowered to the European Union’s minimum level.
“All parties need to recognise that what is happening in the Middle East and the rest of the world is putting Sweden’s economy to the test,” Prime Minister Ulf Kristersson told a press conference.
According to the government, the tax cut would result in a price reduction of one krona ($0.1) for a litre of petrol and 0.4 krona for a litre of diesel.
If necessary, the government said, it would apply for permission from the European Commission, the EU’s executive arm, to lower the taxes even more.
The government also said it was introducing subsidies to compensate households for rising electricity prices.
READ ALSO: Oil Jumps On Trump’s Iran Ultimatum
Oil prices rose on Monday after the United States and Israel warned at the weekend that the war against Iran — which has disrupted oil deliveries through the Strait of Hormuz — would continue for several more weeks.
Jimmie Akesson, leader of the far-right Sweden Democrats, which is propping up Kristersson’s minority right-wing coalition government, told reporters: “The need for a car is obvious in very large parts of the country.”
“But reducing fuel costs is also a measure that helps curb inflation, and that is another reason for doing it,” Akesson told the press conference alongside Kristersson.
Kristersson’s government is gearing up for legislative elections in September.
AFP
