Together with EVs, from 2027, it will become significantly more expensive for Danes to drive petrol and diesel cars, both through higher ownership taxes and rising fuel prices.
Many car owners breathed a sigh of relief when 2026 was announced as the final year for extraordinary increases in the green vehicle tax. That relief, however, will be short-lived. New tax changes are already scheduled, meaning the cost of owning a petrol or diesel car will rise once again, reports BT.
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Diesel cars hit first
The first increase will target diesel vehicles. Starting in 2027, the so-called equalization tax for diesel cars will rise. Diesel owners have enjoyed a temporary 30 percent discount in 2025 and 2026, introduced to offset the diesel tax increase in 2024. That discount will now gradually be phased out. According to calculations from FDM, this change alone could add up to DKK 810 per year for the least fuel-efficient diesel cars.
The next major increase arrives in 2028, when the EU introduces a CO2 quota system for road transport, making fossil fuels more expensive across the board. For an average petrol car driving 20,000 kilometers per year at 16 kilometers per liter, this could mean an extra DKK 1,463 annually.
Political context
These tax hikes are closely linked to the 2020 political agreement, in which a majority decided to raise the green ownership tax on petrol and diesel cars to finance Denmark’s green transition. The effect has been clear: about 70 percent of all new cars today are electric, and among private buyers, the share is close to 90 percent.
As part of the 2026 state budget, the Danish Parliament has appointed an expert group led by Professor Michael Svarer to review future car taxation. Think tanks have proposed models where the green ownership tax could be entirely replaced by charges based on actual driving, such as congestion or mileage fees.
