Motorists should prepare themselves: As of 1 January, the CO2 tax in Luxembourg will increase, affecting mainly the price of fuels and heating oil.

The CO2 tax, which came into force in 2021 at €20 per tonne, will rise to €30 per tonne, after already being raised to €25  earlier this year.

This difference will be reflected in an increase in the price of petroleum products such as diesel, petrol and heating oil - this price already takes into account the reduction in VAT, which, according to the ACL, "will have a minimal impact on final prices at petrol stations".

From 1 January 2023, the increase in the CO2 tax will lead to an addition of about 1.2 cents per litre of fuel. That's about 60 cents more for a tank of 50 litres.

It also leads to 1.4 cents more per litre of heating oil. That's approximately €28 more for a tankful of 2,000 litres.

Since the CO2 tax is levied on every litre of petroleum product (and gas) sold, it is an important source of revenue for the state: €792,232.09 in the first eight months of 2021, compared to €1,441,799.26 in the same period of 2022 (+81.9%).