Fuel prices may increase from September 1. Another urgent meeting on Friday
On Friday, August 7 at 12:00, another urgent meeting regarding fuel prices will be held in the Norwegian parliament. The red-green parties still have not reached an agreement on extending the temporary reduction of taxes on petrol and diesel. The current solution expires on September 1, and without a new parliamentary decision, prices may rise again.
Issues regarding fuel price reductions have once again led to disputes among centrist, center-left, and left-wing parties.
Fot. stock.adobe.com/standardowa
Time is running out. The five parties cooperating on the budget have just over three weeks to decide whether the reduced fuel taxes will remain in effect after the end of August. Talks held on August 6 did not bring a solution. The parties agree that the international situation remains uncertain and affects the energy market, but they differ in their assessment of what actions the state should take.
The dispute continues. Parties remain far from agreement
The Centre Party (Sp) demands the maintenance of reduced taxes on both petrol and diesel. Its leader, Trygve Slagsvold Vedum, does not rule out seeking support from center-right parties if talks with red-green partners fail. The Green Party (MDG) takes a different position. It believes that the current oil price is much lower than in the spring and does not justify another extension of tax cuts.
The Red Party (Rødt) allows for the possibility of further relief if it is needed to alleviate the difficult economic situation of households. The Socialist Left Party (SV) is ready to discuss protective measures but points out that tax revenues could be allocated to other purposes. The Norwegian Labour Party (Ap) has not presented a clear position. Its financial policy spokesperson, Tuva Moflag, only noted that she does not consider current prices to be 'exceptionally high.'
The Red Party (Rødt) allows for the possibility of further relief if it is needed to alleviate the difficult economic situation of households. The Socialist Left Party (SV) is ready to discuss protective measures but points out that tax revenues could be allocated to other purposes. The Norwegian Labour Party (Ap) has not presented a clear position. Its financial policy spokesperson, Tuva Moflag, only noted that she does not consider current prices to be 'exceptionally high.'
Politicians refer to the voices of industry organizations. Some of them (e.g., transport and construction) are forced to use fossil fuels, with no alternative available in the short term.Photo: Fotolia
Reductions cost billions. A new decision is needed from September
At the end of March, the Storting decided to temporarily zero all road tax rates imposed on fuels until September 1. In the revised state budget, the cost of the solution was estimated at about NOK 5.5 billion. For petrol, the reduction amounted to NOK 4.41 including VAT, and for diesel NOK 2.85 including VAT.
Other fuels also saw reduced charges. For bioethanol, the reduction is NOK 2.17 excluding VAT, for biodiesel NOK 2.28, for natural gas NOK 3.12, and for LPG NOK 4.07. Vedum declares that the Centre wants to maintain relief for both petrol and diesel. At the same time, he admitted that partial solutions could be discussed, indicating that the situation regarding diesel is particularly important for some businesses and the transport sector.
Other fuels also saw reduced charges. For bioethanol, the reduction is NOK 2.17 excluding VAT, for biodiesel NOK 2.28, for natural gas NOK 3.12, and for LPG NOK 4.07. Vedum declares that the Centre wants to maintain relief for both petrol and diesel. At the same time, he admitted that partial solutions could be discussed, indicating that the situation regarding diesel is particularly important for some businesses and the transport sector.
Any extension of relief cannot be implemented without another vote. According to information provided by the constitutional department of the Storting, the parliament would have to convene again in August to consider the matter before September 1. The decision to call such a session can be made by the Storting's presidium.
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