Government agrees 60 million euro fuel support package

Finland’s government has agreed on a 60 million euro package to address rising fuel prices, Yle reported. The measures include more support for commuters, transport companies and the agriculture and forestry sectors.

Environment and Climate Minister Sari Multala confirmed the agreement to reporters at Parliament. All government parties have approved the package.

Fuel support accounts for 30 million euros. A further 30 million euros will go towards cutting the basic vehicle tax, up from the 10 million euros previously agreed. The government has allocated 10 million euros to raise the upper limit on the commuter expense deduction.

The package does not include the Finns Party’s demand to reverse a reduction in the fuel distribution obligation, though the government plans to introduce flexibility on the requirement.

The funding will come from basic road maintenance and money allocated this year for capping chimneys that is expected to go unused. Multala said the measures would have no significant effect on prices at petrol pumps, adding that the government could not afford tax cuts worth hundreds of millions of euros.