Luxembourg’s fuel prices to go up in 2020

Luxembourg’s fuel prices to go up in 2020
© Belga

Fuel prices will go up in Luxembourg next year, the Government of the Grand Duchy announced on Monday, explaining that the increase is aimed at enabling the country to meet its CO2-reduction goals.

The move could affect cross-border fuel purchases by residents of neighbouring countries.

“The Grand Duchy of Luxembourg will meet its climate and energy goals solely though targeted measures regarding the sale of road fuel,” the three ministries involved in the measure said in a joint press release. The increases will take effect “between February and April 2020,” they added.

Gas will cost 1 to 3 cents more while the increase will be heavier for diesel, between 3 and 5 cents.

“Luxembourg’s diesel and gasoline prices are much lower than those of neighbouring countries, so it is essential to reduce gradually the price gaps (…) and thus reduce fuel exports,” the Luxembourg Government explained.

“Fuel tourism” has accounted for an average 80% of fuel sales in Luxembourg since the beginning of this century, according to the Statec statistical agency. However, since 2015 and a VAT increase, the ratio has dropped to 75%.

The small country of 610,000 inhabitants has 234 service stations, of which 60% are along its borders. Gas currently sells there at 37% less than in France, while the price of diesel is 42% lower.

According to the Groupement Pétrolier Luxembourgeois (Luxembourg Petroleum Group), the oil sector generates about €2 billion per year in fiscal earnings, about 3% of Luxembourg’s GDP.

The Brussels Times

Latest News

Copyright © 2021 The Brussels Times. All Rights Reserved.