Government turnaround

Shortly after the criticised rise in taxes on biofuels the government is backing down and recommending a reduction. Finance Minister Magdalena Andersson says, “We want there to be good conditions for biofuels and propose that taxes are lowered as much and as quickly as possible.”

  However as recently as December taxes were raised on several biofuels. In combination with falling petrol and diesel prices, sales of E85 and RME have fallen. Back then Magdalena Andersson said the government did not want to raise taxes because of EU regulations, something the Centre Party has pointed out was incorrect.

  In response to why the taxes can be raised now, Magdalena Andersson says, “Biofuels may not be overcompensated in relation to the fossil fuels they replace. And the Swedish Energy Agency’s (Energimyndigheten) new report shows there are good margins for overcompensation.”