Historically cheap to drive a petrol car despite upcoming price increases

Students Alice Klingenberg and Elise Peter hurry across the campus parking lot in Umeå aiming for a white Toyota Corolla. When DN meets them, the autumn rush is particularly noticeable, so the bikes must stay at home on this day.

But it's not just for reasons of convenience that Alice Klingenberg bought the electric hybrid a few years ago.

- It is quite important to me. Both to drive home to the family in Örnsköldsvik and to feel free to do what I want, when I want. To go to friends and so on, she says.

In recent years, her car expenses have been cut sharply following Tidöpartierna's investment in lower fuel prices. A move that has led to Sweden going from having among the highest petrol and diesel prices in the EU to having among the lowest.

- It can feel nice for the moment, but of course it comes at the expense of the environment and other areas, says Alice Klingenberg.

Now more expensive times await when the temporary tax rebates expire.

On Thursday, the petrol price will rise by one kroner per liter and in December it is expected to increase by another three kroner.

At the same time, the Sweden Democrats are working for the Riksdag to stop the increases.

- If we do nothing, a cost shock awaits, said Oscar Sjöstedt (SD) on Wednesday.

However, recent calculations that Julius Andersson, university lecturer at the Stockholm School of Economics, brought to DN show that it is historically cheap to drive a petrol car in Sweden.

The price at the pump has been on a rollercoaster lately. First, prices rose sharply during the 2022 energy crisis, then fell rapidly in recent years.

Over time, you can see a slight rise in petrol prices. But if you take into account that the cars have become more fuel-efficient, the curve for the actual driving cost instead slopes downwards.

In short: it has become cheaper.

If you then add the salary development in Sweden, the downward curve becomes even clearer. The cost of driving 100 kilometers has over time been around SEK 80 to 100.

Now it is around SEK 70.

- Regardless of how it sounds in the debate, it has historically been cheap to drive a petrol car over the past year, says researcher Julius Andersson.

As the tax rebates are expected to disappear in the autumn, however, there will be a notch upwards in the curve.

- It may look dramatic, but it means that it still costs slightly less to drive a petrol car in 2027 than the average in recent decades.

Américo Fernández, private economist at SEB, points out at the same time that households' purchasing power is unusually strong right now.

The reason why financial relief occupies such a large part of the debate is that pessimism is still superficial among households, he believes.

- A Trump news, stock market turbulence or a small rise in food prices can be enough for households to save more and consume less.

- Many have also gotten used to a crisis policy ever since the pandemic. There is an expectation that when the price of electricity or fuel rapidly increases, the government will come to the rescue. It is not sustainable in the long run, says Américo Fernández.

DN was recently able to reveal that recent years' tax reductions on fuel have resulted in just over SEK 67 billion in lost tax revenue. Money that could have been put to better use elsewhere, reason students Alice Klingenberg and Elise Peter in Umeå

- As long as the economy is reasonably stable for most people, I think we can make some sacrifices so that people who are not doing so well can get a little better off. Maybe you can put a little more effort into schools and healthcare, for example, says Elise Peter.

Even if it affects your own personal finances as a student?

- Yes, it's about priorities. It may sting a little more in your own wallet in that case.