© Domingos Oliveira
While both Luxembourg and Germany will drop their temporary fuel discounts as of Thursday, the French government has decided to increase its rate from 18 to 30 cents, thus giving their stations a competitive advantage.
As of Thursday, the government's temporary 7.5-cent fuel discount is no longer in effect. At present, it still remains to be seen whether there will be new compensatory measures to make up for the elevated prices.
People from the sector are primarily concerned about the fact that French petrol stations now offer better prices than those in the Grand Duchy. However, same as Luxembourg, Germany has suspended its fuel discount on Thursday, which increases the likelihood that Germans will once again prefer filling up their tanks across the border.
Oliver Hoen, who is in charge of the Goedert petrol stations, admitted that the government's decision not to prolong the discount came as a surprise: "We actually expected the fuel discount to remain in place or even be increased or doubled."
Hoen estimates that the Frisange station will see a stark drop in customers: "80% of our customers are cross-border workers who fill up their tanks on the way to or from work. I think that we will see a drop of 40% to 50%."
Luxembourg's Energy Mobility Coalition expects that stations in the south of the Grand Duchy will see the greatest revenue losses. Coalition president Romain Hoffmann thinks that the focus of the debate should not be put on social justice, but rather on Luxembourg's ability to remain competitive. Both the sector and the government will have to suffer losses due to the end of the fuel discount, Hoffmann further stressed.
On enquiry, the Ministry of Finance confirmed that the fuel discount cost the government €65 million.
Responding to a parliamentary enquiry from MPs Hemmen and di Bartolomeo from the Luxembourg Socialist Workers' Party (LSAP), Minister of Finance Yuriko Backes further explained that in recent years, businesses in the sector paid more than €30 million in direct taxes per year. In 2017, the total even amounted to €41 million.
In a press statement (LUX) released on Wednesday, the Alternative Democratic Reform Party (ADR) argues that the government should keep the fuel discount in place indefinitely.
