Swedish government rejects proposed fuel tax hike and biofuel mandate

The Swedish government has dismissed key recommendations from its own climate policy review, including higher fuel taxes and stricter biofuel blending requirements for gasoline and diesel, according to public broadcaster SVT.

Acting Climate Minister Johan Britz (Liberal Party) called the proposals “unreasonable,” warning they would drive up household costs and undermine public support for climate policy. “Mixing in more biofuel and raising fuel taxes would push prices up and hit households unfairly,” Britz told SVT. He confirmed the government would not pursue such measures but welcomed the review’s proposal to cut electricity taxes as a long-term solution.

Finance Minister Elisabeth Svantesson (Moderate Party) echoed the criticism, calling a fuel price increase “a bad idea” given current geopolitical and economic conditions. “The review was launched two years ago, before the Trump presidency and the Iran conflict,” she said. “Raising fuel prices sharply now would only make life harder for people.”

Opposition Center Party climate spokesperson Rickard Nordin blamed the governing coalition for failing to accelerate electrification and renewable fuels earlier. “The responsibility for any future price hikes lies with the government,” he said. “It’s clear that pump prices are high because of this government’s policies.”

The climate policy review, titled The Path to Phase-Out, was commissioned in 2024 to propose measures for meeting Sweden’s climate targets. At its launch, then-Climate Minister Romina Pourmokhtari (Liberal Party) had emphasized the need for “fair and effective” climate transition tools.