Government rejects fuel tax calls

Sweden's prime minister Fredrik Reinfeldt has rejected calls by Leif Johansson, head of truckmaker AB Volvo, for taxes on petrol to be raised.

“We did not stand for election on a promise of raising petrol tax,” he told Dagens Nyheter. He said that higher fuel taxes would please few and would reduce people’s mobility.

Environment minister Andreas Carlgren, addressing parliament on Wednesday, said it was “not our approach” to raise taxes on fossil fuels. But he said that the government was in agreement with the Volvo boss:

“We are agreed over the aim to make the use of environmentally fuels pay, compared to petrol. But this needs to happen with long-term rules that are compatible with the EU.”