The new government officially began its second legislative period this week. The coalition agreement published earlier in the week highlights an intended fuel tax increase in 2019.

The agreement states that "taxation on oil products (fuels and heating oil) will be adapted in order to hit the goals that Luxembourg agreed to in the context of the Paris accords. The adjustment will take place from 2019."

Claude Turmes, freshly designated as energy minister, briefly addressed the topic, explaining that the tax increase will not enter into effect on 1 January 2019 as the government has not yet established new tariffs. The government does not yet have a specific number, but the increase could be about two or three cents per litre.

Turmes will have to examine the measure in detail with Pierre Gramegna and Carole Dieschbourg, ministers for finance and the environment respectively.

Fuel sales will be monitored regularly with the aim of reducing the impact of fuel sales on the environment in a continuous fashion. The relevant ministries will also study the consequences of the increase on fuel tourism, which is an important part of the state's budget. In 2016, half of fuel sales occurred at the borders.

At the handover ceremony, the minister assured those present that he would not forget the social context of this measure in governmental discussions. The ministry will look into ways to prevent this measure from negatively impacting those who have no choice but to use their cars.