On 1 April 2006 an Act (SFS 2005:1248) was introduced which required petrol stations with sales exceeding a certain volume to supply biofuels. The purpose is to increase the availability of biofuels.
The requirement is formulated so that all petrol stations with sales above a certain volume two years earlier are obliged to supply at least one kind of biofuel. Originally, the regulation applied to all petrol stations with sales above 3000 m3, but since 2009 the regulation is stricter and includes all petrol stations with sales of at least 1000 m3.
Large investments have been made considering the large amount of petrol stations that have been concerned. The emphasis of investments have lied in the instalment of ethanol pumps, as it is the cheaper alternative compared to pumps for vehicle gas (such as biogas, CNG and methane gas). A subsidy was therefore introduced for instalments of pumps of alternative fuels other than ethanol. The subsidy covered up to 30% of the investment cost after deducting the minimum cost of installing an ethanol pump. The subsidy was not explicitly directed towards a certain type of fuel, but mainly resulted in the instalments of vehicle gas pumps.
During 2007-2010, 57 new petrol stations for vehicle gas were set up in Sweden with subsidy. By the end of 2012, there were 1835 pumps with ethanol, and 135 public fuel stations with vehicle gas.