Minister of Finance confirms fuel discount extension

Earlier this week, government sources suggested the fuel discount could be extended by another month. On Friday, the Minister of Finance confirmed the extension until the end of August 2022.

It is thought the reason for the extension is to bring Luxembourg in line with Germany, which has introduced a similar measure. The Greens announced on Thursday that they intended to approve the proposal on Friday in the government council, even though the ruling party maintains that the fuel discount of 7.5 cents per litre of petrol or diesel would be "pointless".

The measure, which was subsequently approved on Friday, will cost the state 11.5 million euros for August.

Luxembourg's petrol association welcomed the extension, although they would have preferred the discount be extended to the end of September, to bring it in line with Belgium.

In France, the discount is gradually being phased out. On Friday, TotalEnergies announced discounts of 20 and 10 cents respectively until the end of the year.

Vice-president of the Groupement pétrolier, Paul Kaiser, said prices at petrol stations on the German border would be up 35% due to the higher prices in Luxembourg, compared to 2021.

However, Backes ruled out a further extension to the fuel discount as things stand.