Reduce the tax on biofuels!

By: Thomas Ström 4/11/22

For those of us who work with transport, it’s very difficult to keep up with the skyrocketing fuel prices. Especially if you, like NTEX, aim to reduce the company’s carbon footprint by for example refuelling with HVO (hydrotrerated vegetable oil).
When this biofuel, which reduces CO2 emissions by up to 90%, costs several crowns more per litre than regular diesel, it sends out a strange signal.
Why not allow traders, who carry out activities that depend on fuel, to receive a substantial tax reduction for all sustainable biofuels?

I’m not the only one who thinks this would be a good idea. Recently, EU Commissioner for Competition, Margrethe Vestager was approached by representatives from the Swedish Public Transport Association, the Swedish Bus & Coach Federation and some 30 other players who work in transport, fuel, vehicle manufacturing, agriculture, and environmental organisations.

 Together, they demand a long-term tax exemption for all sustainable biofuels. They argue that this is a prerequisite for the Swedish transport sector to achieve its ambitious climate targets. I must say, I agree.

In their op-ed, they point out that increased electrification is an important part of the solution, but that there is much more that needs to be done. “[Electricity] currently solely accounts for 0.01 percent of the energy used for road transport in the EU. By contrast, sustainable biofuels represent 5.6 percent of the energy used, while fossil fuels fill the remaining 94.4 percent.” (Source: 

The higher prices of HVO do not exactly encourage the use of sustainable biofuels. It doesn't take a genius to figure out that in their quest to survive, more and more companies are likely to go back to refuelling their trucks and buses with diesel.

But it is not just players in the transport sector who depend on tax exemptions on biofuels. I think other traders who depend on fuel should also be be included.

Take, for example, the farmer I recently saw in a Youtube clip, who has done everything she possibly can to run a sustainable business. She had switched to HVO, but because prices have skyrocketed, she is now forced to switch back to diesel in order to keep her business running.

And honestly, who can blame her?


Distasteful for Companies to Continue Delivering Despite Sanctions

By: Thomas Ström 4/1/22

NTEX Has Stopped All Traffic to Russia and Belarus.

These are strange, uncertain, and terrible times.
Like most others, NTEX have decided to shut down all traffic to, from, and via Russia and Belarus indefinitely.

Fortunately, this has not required us to lay off any staff. All those affected have been reassigned to other tasks within the company as we continue to grow.

Apart from having shut down these routes, we see no direct consequences of the war. But we are affected indirectly as Ukrainian drivers are leaving their jobs in Europe to participate in the war against Russia. This leads to a shortage of both trucks and drivers, which increases the demand for our services as there are currently more assignments than there are hauliers to carry them out. Thus, the market currently belongs to the hauliers.

Another effect that both we and our customers are experiencing is the high price of diesel. In the past, we have adjusted our customers' contracts on a monthly basis. However, for obvious reasons, we must do it more often now.

In view of the skyrocketing fuel prices, I think our government should review taxation and subsidies. Sure, they have reduced the taxes a little, but since more than 50 per cent of the price is made up of tax, I think it could be reduced even more. As it is now, the Swedish state is making a lot of money thanks to the high prices.

Another aspect of this is that those who are fighting to reduce our carbon footprint by using HVO diesel are paying more per litre than for normal diesel. This despite the fact that this biofuel reduces CO2 emissions by up to 90 per cent. Why not give all traders, who are involved in fuel-dependent activities, a substantial tax reduction for all sustainable biofuels?

I'm not thinking of NTEX in particular, but rather of the hauliers we employ and, not least, of all the Swedish farmers who are currently on their knees because of the skyrocketing costs of fuel, fertiliser, and seed. If no action is taken soon, the cost of food from Swedish farms will also skyrocket. This will affect everyone who shops.

On the subject of food, I recently learned that the dairy giant Arla has decided to stop selling its Kefir sour milk, as they think the packaging has a connection to Russia. I find it remarkable that there are Swedish companies that continue to supply their products to Russia. The fact that they have tripled their turnover since the war broke out, whereas their competitors ceased deliveries, is downright distasteful.


About Ströms blogg


Welcome to my blog. Here I will write about transport and logistics and much more ...

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