On 1 January the fuel discounts introduced by the French government and TotalEnergies will come to an end. While this may be bad news for motorists in France, it is likely to benefit service stations in Luxembourg.

If you frequently top up your tank at French petrol stations, then you may want to consider doing that once or twice more before 31 December.

As of 1 January, the French government fuel discount of 10 cents per litre, as well as the TotalEnergies discount of 10 cents, will cease to exist. Not the best way to start the year, although the French government will offer a €100 fuel subsidy to the most disadvantaged.

The last time this drop in subsidies occurred was on 1 November, when the state discount was reduced from 30 to 10 cents per litre, while the TotalEnergies subsidy was halved from 20 to 10 cents.

While most French motorists are likely irritated by the change, service station operators in Luxembourg are eagerly awaiting the new year.

Fuel tourism returns to Luxembourg

In 2022, Luxembourg experienced the unthinkable: compared to neighbouring countries, it lost its title as cheapest country to refuel.

Back in September, for example, filling up with fuel was cheaper in the French border region of Lorraine, thanks to the high subsidies on the French side and the Luxembourgish government's decision to discontinue their own fuel discount.

Read also: Government seeks to end 'fuel tourism' in the long-term

It remains difficult to predict the size of this gap a week in advance. However, a brief glance at the current figures can provide us with a ballpark estimate.

These are the current average national prices in France (as of 21 December 2022):

Diesel: €1.726 per litre

SP98: €1.897 per litre

SP95: €1.623 per litre

In comparison, here are the maximum fuel prices in Luxembourg (as of 21 December 2022)

Diesel: €1.597 per litre

SP98: €1.681 per litre

SP95: €1.454 per litre

The difference is already striking, and with French prices due to rise by another 10 or 20 cents on 1 January, motorists in the border region will choose to make the extra drive to Luxembourg to top up the tanks. Fuel tourism is far from dead.