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Explosion of prices at the pump: Here’s why Luxembourg has abandoned its fuel rebate

  • Post category:Economy News
  • Reading time:4 mins read

If the Bettel government will not follow the model of the general rebate at the pump, “French style”, it is because it has made its calculations and clearly wants to put an end to tourism at the pump.

Is the Bettel government preparing to give a new boost to consumers and businesses penalized by soaring energy prices? Will he announce the establishment of a “energy check“socially more just, as François Bausch, the Minister of Mobility wishes? Prime Minister Xavier Bettel and Minister of Energy Claude Turmes will speak at 1 p.m. at the end of the government council meeting this Friday morning.

Its French neighbor chose on September 1 to provide direct assistance to motorists by increasing 18 to 30 cents per liter her fuel discount. What does it matter if refueling has been more interesting in Lorraine since Thursday, as was foreseeable. The Luxembourg government, which would have had time to review its copy, will not reconsider its decision. He did his calculations.

He “does not plan to extend the rebate 7.5 centimes on a liter of gasoline and diesel, respectively to take the same path as France“, clearly posed Claude Turmes on Friday in his answer to the parliamentary question of deputy Fred Keup (adr) focused on the significant state revenue represented by tourism at the pump.

SAME IMPACT ON STATE REVENUES

Luxembourg’s non-alignment with the French rebate strategy is due to a calculation. The expected loss of tax revenue for Luxembourg, which will result from the French rebate, “will be of the same order of magnitude“for Luxembourg than the cost of the measures taken by France if Luxembourg made the same choice, assures Claude Turmes, relying on the”latest estimates“.

The Green Minister of Energy recalls that Luxembourg is committed to combating climate change and “wants to reduce CO2 emissions by 55% by 2030“.

To achieve this, the government wants “gradually reduce the sale of gasoline and diesel. The goal is therefore that in the medium term, fewer people come from abroad to Luxembourg to refuelas is the case today“, clearly writes Claude Turmes.

The Grand-Ducal regulation of June 22, 2022 sets the reductions in greenhouse gas emissions for the various sectors until 2030. A major polluter, the transport sector will have to drop from 5.27 million tonnes of CO2 emitted in 2021 to 3.05 million tonnes by 2030.

THE SOLUTION TO LOWER PRICES IS EUROPEAN

Government takes on rising energy prices very seriously“, underlines the minister, before recalling that he has already put his hand in his pocket without counting the cost. As proof, the decisions taken during the tripartite “energy” which fixed direct aid for “923 million euros and state guarantees of up to 500 million euros to support citizens and businesses in these times“complicated. Not to mention the introduction of the energy tax credit and the energy bonus for low-income households.

The problem of high energy prices requires “above all a European approach and measuresbecause this is the only way to stabilize and lower energy prices throughout Europe“, assures the Minister of Energy. A subject discussed at the highest level this week between Xavier Bettel and Emmanuel Macron in Paris.

European energy ministers will meet on September 9, 2022 to discuss the step to take to move in this direction.

Also to read:

Soaring energy prices: Xavier Bettel will speak live on Friday

Up to 30 cents cheaper: Filling up is now more interesting in Lorraine

New fuel discount in France: “Luxembourgers will go to fill up in Lorraine”