From September 1, new fuel prices at gas stations. This is how Norway compares to the rest of Europe

The temporary tax reduction was introduced after a sharp rise in global fuel prices related to the war with Iran. According to Nettavisen, Finance Minister Jens Stoltenberg presented the Norwegian parliament with data showing Norway's position compared to EU countries. The comparison was requested by MP Helge André Njåstad from the Progress Party (Frp). The politician pointed to the situation of Norwegian companies competing with businesses from countries where tax burdens are lower.

After September 1, the Norwegian tax on diesel will be among the highest in Europe. For petrol, Norway will also be in the upper part of the ranking presented by Stoltenberg. For a blend containing 85% petrol and 15% bioethanol, the tax will increase from 3.23 to 6.76 NOK per liter. This means a change of 3.53 NOK. The calculations are based on the typical share of biofuels in liquid fuel sales for road transport in Norway.

A similar change will apply to diesel. For a blend consisting of 85% mineral oil and 15% biodiesel, the tax will increase from 2.63 to 6.04 NOK per liter. The difference will be 3.41 NOK per liter. The data used in the comparison comes from the weekly published list of petroleum product prices in EU countries. At the same time, the article notes that direct comparison between countries has limitations due to different tax systems and varying shares of biofuels.

There is a significant difference when compared to Sweden. There, the tax is currently 1.57 NOK per liter of petrol and 1.24 NOK per liter of diesel. After the Norwegian increase, the difference for diesel will be 4.80 NOK per liter. The Norwegian rate will thus be almost five times higher. For petrol, the difference will reach 5.19 NOK, and the Norwegian tax may turn out to be more than four times higher.

However, the comparison is not entirely equal. Sweden uses a blend with 10% biofuel, while Norwegian calculations assume a 15% share. The Swedish tax reduction is to remain in force until the end of November, after which their rates are also expected to increase by several NOK per liter. Norway, on the other hand, will be at a level similar to Denmark. According to the data presented, Danish charges are 6.26 NOK per liter of diesel and 7.88 NOK per liter of petrol.

Stoltenberg pointed out that several countries have introduced temporary fuel tax reductions. The comparison does not take into account that some of these measures may expire later, as is expected to happen in Sweden. This means that the European ranking may change again after the end of further temporary support programs.