Finland’s proposed €60 million fuel support package has exposed disagreements within Prime Minister Petteri Orpo’s coalition government, with parties divided over whether to compensate motorists and businesses for rising costs or reduce fuel prices directly at petrol stations.
Orpo said on Tuesday that negotiations had narrowed the proposed package to approximately €60 million, with measures intended to help commuters, transport companies and other groups affected by high fuel costs. However, the government had yet to reach an agreement, with the Finns Party opposing the proposal put forward by Orpo’s National Coalition Party.
Speaking at an event organised by the Finnish Association of Political Journalists, Orpo said three of the coalition’s four parties had accepted his party’s proposal, submitted on Friday. The Finns Party, led by Finance Minister Riikka Purra, remained opposed.
“We just need to have the courage,” Orpo said, according to Helsingin Sanomat, urging his coalition partners to settle the remaining differences.
The prime minister acknowledged that the government’s ability to provide additional financial assistance was limited. He also said the funding arrangements for the proposed measures had not been resolved, underscoring the challenge of offering relief while keeping public spending under control.
The negotiations have continued for several weeks as the government considers ways to ease the pressure of fuel costs on households and businesses. According to Helsingin Sanomat, the options under discussion include direct assistance for transport companies and the agricultural sector, as well as changes to tax deductions available to people who drive to work.
The National Coalition Party has proposed increasing commuting-related tax deductions. Under the existing system described in the reports, eligible taxpayers can deduct commuting expenses of up to €7,000 a year, subject to a €900 threshold. MTV News has also reported that the government is considering using the tax system to provide assistance to commuters and businesses in the transport sector.
However, the Finns Party argues that these measures would not address the immediate problem of high petrol and diesel prices. Purra rejected Orpo’s account of the negotiations, saying the proposed package contained no measures that would directly lower prices at filling stations.
In a post on X, Purra argued that temporarily reducing Finland’s renewable fuel blending obligation was the only effective option being considered. The requirement obliges fuel distributors to include a minimum proportion of renewable fuels in the petrol and diesel they sell.
The Finns Party wants the government to lower that requirement in an effort to reduce fuel costs. The National Coalition Party and the Swedish People’s Party have resisted changes, citing climate commitments and investment considerations.
The disagreement reflects two different approaches to fuel price relief. The proposed support package would help eligible households and businesses manage their expenses through financial assistance or tax measures. Reducing the renewable fuel obligation, by contrast, would change the requirements governing the composition of fuels sold in Finland, although the effect on prices at petrol stations would depend on how the change affected costs across the fuel supply chain.
Purra also disputed suggestions that her party was responsible for holding up an agreement. She said the Finns Party had not been contacted about the negotiations since Friday.
Jani Mäkelä, the Finns Party’s parliamentary group leader, also criticised Orpo’s remarks. Speaking to Ilta-Sanomat, Mäkelä described the prime minister’s comments as an attempt to shift responsibility to a coalition partner. He argued that the proposed support was inadequate and accused the other governing parties of refusing to make meaningful changes to the renewable fuel requirement.
According to Ilta-Sanomat, the current proposal includes limited flexibility in meeting renewable fuel obligations but does not provide for a substantial reduction in the requirement.
The dispute comes as Orpo’s government faces competing demands to ease pressure on households and businesses while controlling public expenditure. Any agreement on fuel support must also resolve how the measures will be financed and whether the coalition can agree on the most appropriate way to deliver relief.
Orpo has continued to defend his government’s broader fiscal adjustment plans, which include proposed savings in the pension system and healthcare administration. The National Coalition Party has previously outlined a plan to seek €9 billion in spending cuts, adding to the wider debate over how Finland should balance public finances with the cost pressures facing residents and businesses.
For now, the proposed €60 million package remains subject to negotiations. The central disagreement is not only how much assistance the government should provide, but whether relief should come through compensation for fuel expenses or changes intended to bring down prices at the pump.
