Many were relieved when Minister of Finance Trygve Slagsvold Vedum (Sp) in March said that he and the government would “take action” if the high petrol price continued. Then the price was 26 kroner. Three months later, the price of a liter is constantly creeping upwards and approaching 30 kroner. But tax cuts on fuel are not relevant for Vedum. – There are no changes in the fuel taxes in our tax and duty scheme now. But in the autumn we will look at tax and fee measures and create a new budget for next year, he says to news. – Three months ago you said “We can not have such prices over time.” What did you mean? – We are very concerned that the sum of things can be demanding for many. That is why it is important to have measures that help people who earn 400-600,000 kroner. People with ordinary incomes must experience that taxes and fees go down. – But did you mean the petrol tax? – We have talked about many things, for example commuter deductions. But the big price effects are due to international energy prices, not the fuel tax. Therefore, the government must look at other tax and duty measures that we can take. – If the price of petrol exceeds 30 kroner – will they do something then? Vedum does not answer that question, because he breaks off his adviser. Economist: – This affects the countryside That the government does not want to reduce the fuel tax, says NHH professor Frode Steen increases the economic inequality between people who live in cities and those who live in districts. – There are some redistributive effects that are important here. Those who have an electric car often live in the cities and drive shorter. While those who have the most fossil cars live “in the countryside” outside the cities and drive longer. Thus, the costs are greater for them, says the economics professor. SURPRISED: Professor Frode Steen at the Norwegian School of Management thinks it particularly affects motorists in the districts that the Center Party’s Minister of Finance will not give a reduced petrol tax. Photo: Sindre Øye Helgheim / news Steen thinks the result will be weakened purchasing power for people outside the cities. – The price of petrol and diesel affects the countryside more. If the government wants them to have even less purchasing power than those in the cities, it is at least very effective. At the top, he points out that the electricity subsidy from the government is already a form of fuel subsidy for electric car owners who charge at home. – There are many good reasons why we are all protected against high electricity prices. But that means that electric car owners get double. They received strong subsidies when they bought the car, and now receive indirect help by making their fuel cheaper compared to those who drive fossil fuels. The interesting question then is who stays, says Steen. – Why support the people who charge the car at home, and not people who are dependent on filling the tank at a station in the district, Vedum? – Because heating and lighting in the house is a very large proportion of the costs to people. This and interest are among the biggest costs. Therefore, we are very concerned about not making moves that make interest rates go up too fast. – The state budget is NOK 1550 billion. Will fuel subsidies for people in the districts overturn the load? – It is not about, but the sum of all measures. The interest rate is hitting incredibly hard. If one spends more of everything without financing it, there will be more pressure, says Vedum. Sweden cuts fuel tax The Minister of Finance would rather prioritize tax relief for everyone. While Steen at NHH says tax relief will not solve the distribution problem. – It just gives everyone a little more to mess with. It only increases the income for everyone just as much. Swedish authorities cut the fuel tax by NOK 1.30 per liter on 1 May, and other countries have done something similar. – There are surprisingly many countries – which do not have oil revenues such as Norway – that have chosen to do something about the tax level. The Norwegian state takes in a lot of money at today’s high oil prices, but does little or nothing with the taxes, says Steen. – He should be on the field – The price of petrol in Norway is very high. It goes beyond everything else for us who drive a car. Pål Bergby says that. On his way home to Norway, he refueled at a petrol station in Tanum on the Swedish side of the border. – LOOK AT SWEDEN: Pål Bergby fills the tank before he crosses the Norwegian border. In Sweden, the government has reduced the fuel tax. Photo: news He has not forgotten Vedum’s promise in March. He interpreted it as meaning that fuel taxes could go down. – That was what Vedum promised, but he has not done anything. He should be on the field and sort it out. Bergby reckons that it may take time. – Norway tends to come ten years after Sweden no matter what it is.
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