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Fuels in Luxembourg: Discount removed, grain of sand in the tank

  • Post category:Economy News
  • Reading time:39 mins read


Fuels in Luxembourg Discount removed, grain of sand in the tank

LUXEMBOURG – No more fuel discounts, claims the government. A decision that raises an outcry.

Shell Station

Unlike France, Luxembourg will not introduce a “super-discount” on fuels.

Vincent Lescaut/The essential

The end, Wednesday, of the rebate of 7.5 centimes per liter of fuel makes people cringe. The CSV, the main opposition party, is asking the government to extend it. “Where people will they soon have to go to Longwy to refuel?” he wonders.

Same story on the side of the Luxembourg Energy Mobility Group (ex-Luxembourg Petroleum Group) which “does not understand” that the government is putting the sector “in this difficult situation, after years of greatly reduced sales”. “The Luxembourg State agrees to lose significant revenues linked to excise duties/CO2 taxes/VAT of more than 70 centimes per liter of fuel not sold, is surprised Romain Hoffmann, the president of GEML. We are asking for a reinstatement of at least the current discount, if not even higher, in order to maintain a competitive advantage vis-à-vis France”.

Aim to reduce fuel tourism

But the government will not choose this option and will not follow the path of France, which has implemented since Thursday a “super-discount” on fuels. This is assured by Claude Turmes, Minister of Energy, Yuriko Backes, Minister of Finance, and Joëlle Welfring, Minister of the Environment, in a parliamentary response. “The loss of tax revenue expected for Luxembourg, which will result from the French reduction, is equivalent to that which would be recorded if measures similar to those of France were introduced in the Grand Duchy”, they argue.

In addition, they recall that Luxembourg “must contribute to the fight against climate change, by reducing CO2 emissions by 55% by 2030. “This includes the gradual reduction in the sale of gasoline and diesel, underline -they. The objective is therefore that in the medium term fewer people from abroad come to fill up in the Grand Duchy, as is the case today”.

Energy tax credit

Faced with the rise in energy prices, the government notes that direct aid amounting to 923 million euros and additional state guarantees amounting to 500 million euros have already been decided to financially support citizens and businesses, within the framework of the tripartite. “The an energy tax credit has been introduced, as well as the energy bonus to help low-income households,” he explains.

Note that the Greens, although members of the coalition, also plead for the establishment of an “energy check”, calculated according to household income. When questioned, François Bausch, the Déi Gréng Minister of Mobility, said Thursday that he could not speak on the subject.