Fuel tax cut shields motorists from increased CO2 tax

Siv Jensen Road tollsFinance Minister Siv Jensen and,,,Party Leader of the Progress Party (Frp), Siv Jensen. Photo: Bjørn Ivar Bergestuen / Frp.

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Finance Minister Siv Jensen (Frp) confirmed that there will be an 5 per cent cut in the road usage tax for fuel in the state budget, shielding motorists from an increased CO2 tax.

Prime Minister Erna Solberg (H) said that there would be a 5 per cent increase in the CO2 tax before her speech at the UN General Assembly last week.

The tax cut and tax increase should not affect fuel prices. Lower road user fees on fuel should compensate for the increased CO2 tax on diesel and gasoline, reported VG newspaper.

Finance Minister Siv Jensen told VG that the 5 per cent cut in fuel use tax should balance the increase in the CO2 tax on fuel. She said this is in line with what was agreed by the four political parties in the Granavolden platform.

This latest move safeguards what Frp has been working on for many years: to keep fuel prices down. Jensen assured that there is no reason to worry that the CO2 tax will lead to higher fuel prices.

© NTB Scanpix / #Norway Today

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