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The Local Sweden · 2 tim sedan Utrikes

Norwegian drivers set to flock to Sweden as fuel prices plummet to 1999 levels

Sweden will become one of the cheapest countries in Europe for petrol and diesel when it slashes taxes on July 1st.

If you want cheaper petrol, you will have to drive all the way down to North Macedonia, reports Swedish news agency TT, comparing 35 countries.

On the diesel front, Sweden will become the fifth cheapest country, behind Bosnia, Kosovo, North Macedonia and Poland.

Swedish fuel station owners are working flat out to top of their fuel tanks ahead of the expected onslaught, especially in the towns close to the Norwegian border, where Norwegians already make up a large customer base.

"The pumps might run dry for a few hours," David Sällh, head of emergency preparedness at the industry organisation Drivkraft Sverige, told TT.

"But that will be sorted out. There is fuel available. There's no worry about running out completely. It's more that deliveries might take some time."

The Swedish government's tax cut of three kronor per litre at the pump is set to be in effect until December 31st.

It was announced as part of an energy crisis relief package in the spring, and is intended to offset rising energy costs from the war in the Persian Gulf.

But Claes Hemberg, an energy economist at heat pump manufacturer Nibe, is critical of the move, as electricity taxes are not falling in tandem.

According to Hemberg, speaking to TT, petrol prices this summer are now heading towards 13 kronor per litre, the lowest level seen since 1999.

This is largely thanks to a series of tax cuts that over five years have slashed petrol tax from 8.58 kronor to 1.96 kronor per litre.

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