After two weeks of national mourning over the death of King Harald V, Norwegian politicians ended a controversial political truce and have resumed quarreling over the country’s high fuel taxes. The taxes are adding to affordability issues even in wealthy Norway, after oil prices hit USD 109 on Friday morning.

Prime Minister Jonas Gahr Støre is under pressure to offer tax relief, like his government did last winter when oil prices also soared. That relief ended on September 1, though, sending pump prices back up to levels that are record-high also in an oil-producing country like Norway.
Ole-Rikard Hammer, an oil and tanker analyst at Arctic Securities in Oslo, was calling the situation “dramatic,” as oil supplies were further disrupted after the Houthi militia in Yemen took control over more areas around the entrance to the Red Sea. Oil prices had earlier soared over US President Donald Trump’s war on Iran and tensions around the Strait of Hormuz.
While high oil prices further boost revenues for Norway’s own oil industry, Norwegian consumers are hit just as hard if not harder because of the country’s notoriously high fuel taxes. While a gallon of diesel in the US tipped over the USD 6 mark on Friday, the equivalent already cost roughly twice that in Norway. Even though electric vehicles now dominate, many Norwegians living outside major cities and towns, along with industry, still rely on diesel.
They’re angry, and blaming Støre’s Labour Party government for making fuel prices even higher than they need to be. The Center Party, which has been part of earlier Labour governments and supported Støre, is defecting and demanding that fuel tax relief be reinstated.
“The Center Party will propose reinstatement of the fuel tax cut at the first public meeting in Parliament (after Parliament reopens in early October),” Center leader Trygve Slagsvold Vedum told state broadcaster NRK on Thursday. That would cut around NOK 4.50 per liter from the price of fuel at the pump and Center has support from the right-wing Progress Party, which currently tops public opinion polls in Norway, and the small Christian Democrats party.
Progress, meanwhile, is putting heavy pressure on Norway’s Conservative Party to join the tax relief effort, in order to form a majority in Parliament and force the government into cutting fuel taxes again. Progress went so far to also propose an early opening of Parliament to address the fuel price issue.
“This is a crisis for all companies that are having trouble getting their wheels to turn, and who signed fuel contracts in January (before oil prices jumped),” Progress Party leader Sylvi Listhaug claimed on national radio even before oil prices jumped again on Friday. Now, Listhaug argues, they’re having to pay high fuel prices plus high fuel taxes that already are prompting many Norwegians to once again drive over the border to Sweden and fill their tanks. Sweden has long had lower fuel taxes than Norway and now, after more tax relief has been granted, a liter of unleaded fuel is as much as 10 kroner cheaper than in Norway. That comes at a time when the Norwegian and Swedish kroner are worth around same against the US dollar, on which oil prices are based.
The Conservatives’ new leader Ine Eriksen Søreide now finds herself under as much pressure as her arch-rival Støre of the Labour Party. She hesitated at lowering fuel taxes and hasn’t bowed to the Center- and far right demands yet, but now more than 60 local Conservative Party chapters around Norway are calling on her to cut fuel taxes, too. Most are from outlying areas, where public transport is poor and reliance on cars is high.
Even though farmers still benefit from a lack of fuel tax on diesel used for their tractors, Vedum of the Center Party claims they’re still suffering because of the high cost of other transport. He brushes off challenges over Norwegians’ otherwise high purchasing power, and over how high oil prices benefit Norway’s oil industry, which in turn pumps up Norway’s huge sovereign wealth fund.
“You have to look at who’s being hit by high fuel prices now,” Vedum argued, “and that’s those within construction, transport and fisheries.” And “normal folks,” as he calls middle-class Norwegians, who need to drive.
NewsinEnglish.no/Nina Berglund













