Norway temporarily cuts petrol, diesel taxes amid Middle East war

Everyone is talking about oil and LNG. But this also affect aluminum and fertilizer. There is a world wide lack of fertilizer.

I think most of the world's oil is state-owned. Looking at the top 10 only the US and Canada are fully private, Brazil and Russia have multiple companies but I believe the government still has final say, then like China, Iran, Saudi, etc are all fully state-owned.

We do not have enough oil refineries to sustain ourselves, the millions of barrels of crude oil does nothing without that.

We’re not concerned. It’s just populist knee-jerking by the opposition

Thanks to the mullahs you mean

Yeah, saw over 30NOK/L a few days a go. That made me have a double take. Edit: luckily the price came down somewhat since then. Where I am at least.

Diesel is 23,5nok/l today and 21,4nok/l for gas. You live in a really expensive place in Norway.

5-7 dollars for a US gallon? 18-23 nok for a liter.

Because it is an artificial indirect subsidy by lowering the tax. When the price lowers, demand goes up, or in this case; when the price goes up, demand goes down. That means the people who would have been driving in a car, now take the bus or a train. That increases the efficiency for the money spent. You now have an indirect subsidy where the tax money that would go to the state, indirectly goes out to the population, which everyone should by now know causes inflation. We are already having issues with getting our inflation down to 2%, and we are expecting rate hikes this year. The fact that we now have an indirect subsidy means that the rate hikes may have to go on for longer than without it. That will cause stuff like mortages and loans to go up. People may end up trading a few hundred NOK less in fuel, for a few thousand more in loans. A better way would be to not make the tax universal (as it is now), but only give the lowest earners an indirect subsidy. They are the ones that need it, and by subsidizing only them, we don't have to hike the rates quite as high and for as long. Edit: When people who were going to spend money on fuel suddenly find them selves with money left over, they will spend it on something else. That increases the inflation. You get less for the same amount of money, or in this case, you get the same amount you normally get for your own money + the indirect subsidy from the state. If the tax was still applied, the money spent on gas would mean less spent in other areas. That could bring food prices down for example.

Overall it's negative though when looking at other industries in the country.

Norway relies more on its investments than on its oil nowadays. Overall this situation is a net negative for us.

32% of all cars in the country are EVs.

Thank you, you are right!

Electric trucks, including big semi-trucks with sufficient range and cargo capacity have been a thing for five to six years now. Construction equipment is also largely available in electric variants. Not so sure about agricultural vehicles, though.

> It's not subsidizing, but lowering the tax amount It's the same thing. Everything is taxed and subsidized everywhere in these countries, taxing something less is the same as giving it more money. You start from a situation where the gov gives out and collects a specific amount. You make the gov collect less: the fossil fuel industry has more money, the gov has less money. It's the same result as if it was subsidized more, except it's better for PR/Marketing to not say you're subsidizing fossil fuels more, you're just "lowering taxes".