Diesel and petrol in Sweden: Government is considering fuel rationing

Blockade of the Strait of Hormuz

EU country is thinking about fuel rationing

EU member Slovenia has already done it. Now the next country in the European Union is threatening to restrict sales of gasoline and diesel.

Sweden’s government is considering possible fuel rationing given the “significant impact” of the Iran war on the country’s economy. Rationing is not currently being specifically considered, Prime Minister Ulf Kristersson said on Thursday. “However, we are prepared for this eventuality and will announce this in good time if necessary.”

According to the head of government, the effects of the war on the Swedish economy have recently worsened – what was initially a “limited impact” has become “significant” and there is a risk of higher inflation and a slowdown in economic growth.

In Sweden, Finance Minister Elisabeth Svantesson spoke on Thursday of the “worst crisis in a very, very long time as far as energy is concerned.” In a prolonged war, “fuel rationing could be considered, but first we would make a recommendation to use fuel sparingly,” she said. In addition, public transport should be given priority.

In addition, the country may also have to increase its own energy production, the finance minister explained, citing solar, wind, hydro and nuclear power as options.

Sweden has already taken measures to mitigate the impact on households of energy price increases resulting from the Iran war, including significant cuts in taxes on gasoline and diesel. The government plans to present an updated economic forecast at the beginning of May.

In Germany, Economics Minister Katherina Reiche (CDU) halved the growth forecast on Wednesday. She cited increased energy costs as reasons, among other things.