Tax is introduced on E85 and HVO100 – can cost SEK 30 / liter

The government proposes that more environmental fuels be taxed, which is estimated to give 1.8 billion extra to the Treasury per year.

Sweden has an exemption from the EU’s requirement that environmental fuels be taxed, but the government does not expect any extension. Therefore, they propose that the ethanol / petrol fuel E85 receive the same tax as petrol (SEK 6.74 / l) and that the diesel fuels ED95, FAME and HVO100 be subject to diesel tax (SEK 4.74 / l) on 1 January 2023.

With today’s fuel prices, this means that E85 will cost around SEK 23 per liter and HVO will end up at almost SEK 30 / liter.

However, there is an incentive for fuel companies to sell at a lower price through so-called cross-subsidization. This means that fuel companies can take credit for the environmental benefits of environmental fuels and reduce the mix of expensive biofuels in ordinary petrol and diesel.

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Source: Senaste nytt från auto motor & sport by www.mestmotor.se.

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