The Swedish government has announced a shift in its fuel policy by increasing the biofuel blending mandate, known as the reduction obligation, from 6% to 10%.

This move comes alongside a reduction in fuel taxes to prevent a rise in pump prices.

Energy and Business Minister Ebba Busch stated that the tax cut should offset any price increases due to the higher biofuel mandate.

The government aims to meet its climate goals by 2030 without increasing costs for citizens.

However, there are concerns about potential price hikes due to fluctuating oil prices and refinery charges, as noted by Martin Kinnunen from the Sweden Democrats.

The policy change is facilitated by new EU regulations, allowing fuel suppliers to include electricity from public charging stations in their emissions reductions.

The tax adjustments are expected to cost the state treasury 3.7 billion kronor next year.