Norway cuts fuel taxes to ease price pressure

Norway cuts fuel taxes to ease price pressure
Photo: Collected

Online Desk

Published: 2026-03-30 16:10:00

Norway has announced a temporary reduction in taxes on petrol and diesel in a bid to cushion consumers from rising fuel prices triggered by the ongoing conflict in the Middle East.

According to a government statement issued on Monday, the revised tax rates will take effect from 1 April. Petrol taxes will be cut by 4.41 Norwegian kroner (around $0.41) per litre, while diesel taxes will be reduced by 2.85 kroner (approximately $0.29) per litre. The reduction will also extend to mineral oils used in sectors such as fishing and hunting.

The decision follows a parliamentary vote held on 26 March, where lawmakers backed the tax cuts despite opposition from the ruling government. The move exposed divisions within the coalition, as the Centre Party broke ranks and sided with opposition groups to support the measure.

Norway’s Finance Minister Jens Stoltenberg acknowledged the disagreement, stressing the importance of maintaining unity within the coalition.

He noted that discussions would be held to prevent similar situations in the future.

Parliament estimates that the tax reduction will cost the government around 6.3 billion kroner in lost revenue.

Norway, one of Europe’s leading oil and gas producers, has a unique energy landscape, with electric vehicles accounting for nearly one-third of its total car fleet as of late 2025. Diesel and petrol vehicles, along with hybrid models, make up the rest of the country’s transport sector.

Officials say the temporary tax relief is aimed at stabilising fuel costs and easing the burden on consumers amid global energy market volatility.