Temporary fuel subsidy for transport companies

Last updated: 2 December 2022

The Act introduced on 2 June aims at compensating the extra-costs incurred by the ongoing energy crisis for transport companies:

  • The subsidy will be granted retroactively for the period from February to April 2022 and cover 5% of fuel costs of road transport companies (both for the transport of goods and passengers)
  • All forms of fuels and electricity will be covered, except fuel oil
  • Applications for the subsidy will be accepted from November 2022
  • The act will enter into force once a corresponding decree is published

 The Finnish government submitted a proposal to Parliament to amend the Act on the Promotion of the Use of Renewable fuels for Transport (or Distribution Obligation Act), which contains the following:

  • A temporary reduction of the biofuels blending obligation to 12% in 2022 (-7.5 pp)
  • The temporary easing of the regulation on exceeding the distribution obligation
    • Any excess in distribution during 2022 could be taken into account entirely in the calculation of distribution obligation in the following calendar year

Lessening the distribution obligation is expected to:

  • Yield a 12 cents per litre reduction in the price of diesel
  • Indirectly increase the excise duty revenue from transport fuels by about EUR 75 million in 2022. It is proposed to budget EUR 75 million for the support in the second draft amending budget for 2022. This portion of the amendments entered into force on 8 July 2022

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