Norway’s planned fuel tax cuts likely break state aid rules, finance minister warns

Norway’s planned cuts to CO₂ taxes on diesel and domestic maritime fuel—set to take effect on 1 May—probably constitute illegal state aid under EEA rules, Finance Minister Jens Stoltenberg (Labour) has warned, though the government will implement them regardless.

In an interview with VG, Stoltenberg confirmed that Norway’s EEA Surveillance Authority (ESA) had signalled “a high risk” the tax reductions violate state aid prohibitions. “We risk imposing a burden on the very businesses we aim to help,” he stated.

The cuts, covering CO₂ levies on construction diesel, automotive diesel, and domestic shipping, were approved by parliament just before Easter in a cross-party vote led by the Centre Party, Conservatives, Progress Party, and Christian Democrats. Stoltenberg had cautioned during debates that the measures might breach EEA law but stressed that the government lacks constitutional authority to refuse.

“The Storting [parliament] determines taxes and duties in Norway,” he told NRK. “We cannot collect fees not approved by law—that’s enshrined in the Constitution.” He criticised the rushed process, noting that previous finance ministers had spent years unsuccessfully seeking ESA approval for similar CO₂ tax adjustments. “It’s odd to expect me to resolve in weeks what others couldn’t in years,” he added.

The 1 April fuel duty cuts (reducing road usage taxes) remain unaffected by the ESA warning. Those earlier reductions had already lowered petrol and diesel prices at the pump.

Stoltenberg’s comments came in a written response to Labour MP Tuva Moflag, who had questioned the legality of the tax changes.