Chamber of Deputies on petrol pricesCSV demands indexing of CO2 pricing

Fanny Kinsch
How should politicians react to the recent increase of petrol prices and is the CO2 tax appropriate?
© AFP

These topics were discussed in the Chamber of Deputies on Tuesday, at the request of the CSV. The opposition party demanded an indexing of CO2 pricing and an adaptation of the mileage allowance.

According to the CSV, people living in rural areas with poor public transport links are being unduly punished. Taking CO2 pricing out of the index was a mistake, they say, as it weakens consumers’ purchase power.

The LSAP, DP and Déi gréng argue, however, that the current compensation plan makes more sense. François Benoy: “The staggered tax credit system and the increase of the cost of living allowance means that lowest income households end up with 60 Euros a year extra, so essentially we’ve introduced a climate bonus for these people.”

Additionally, the majority parties noted that the price increase was only in small part due to the CO2 tax, but largely caused by the historically low prices last year.

Seen over the last ten years, current prices were, in fact, not particularly high. The role of government was not to even out stock market pricing, argued Marc Goergen from the Pirate party.

Still, the Pirate Party thinks that private persons are disproportionately burdened. They demand the introduction of a kerosene tax. The ADR issued a motion requesting the abolishment of the CO2 tax, which wasn’t supported by any other party. A motion from the CSV to rework the mileage allowance according to social, professional and geographic criteria was rejected by the majority.

Sample calculation

On 30 April 2020, 1 litre of petrol (95 oct) cost 0.891 Euro. This comes to 44.55Euro for full tank of 50 litres.

On 30 April 2021, the same petrol cost 1.28 Euro per litre, which comes to 64 Euro for 50 litres, a difference of nearly 20 Euros.

Current petrol prices

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