Norway’s plans to reduce fuel taxes face legal hurdles after Finance Minister Jens Stoltenberg warned such cuts would most likely breach EU state aid regulations. Speaking to reporters in Oslo on Wednesday, Stoltenberg cited European Commission guidelines that prohibit member states from undercutting fuel taxes below minimum levels set for environmental protection.
The minister’s remarks follow weeks of debate over rising fuel costs for transport companies and fishermen. Earlier this month, the government proposed trimming the special tax on diesel by 20% to ease pressure on industries heavily reliant on road transport. Stoltenberg argued the move could trigger retaliatory measures from Brussels, forcing Norway to repay unlawful subsidies with interest.
Industry groups reacted swiftly. The Norwegian Shipowners’ Association called the warning a red flag for maritime businesses already struggling with high operational expenses. A spokesperson said any legal challenge would delay relief measures and increase uncertainty for companies planning investments this year.
Stoltenberg did not rule out temporary support but stressed compliance with EU rules. Norway, though not an EU member, aligns with the bloc’s state aid framework under the European Economic Area Agreement. The government now faces a choice between legal risks and immediate economic relief as inflation remains above 5%.
Parliament’s finance committee is scheduled to vote on the proposal next week. If rejected, Stoltenberg said the government would seek alternative measures to stabilize fuel prices without violating international obligations.
Source: e24.no