Luxembourg is no longer the centre of “fuel tourism”. For a long time, the Grand Duchy’s lower pricing drew a large number of motorists from all across the Greater Region. The Grand Duchy’s appeal has certainly waned as the price differential with its neighbours has melted away, or even reversed (some types of fuel are now cheaper in Germany and France).
It should be noted that Luxembourg’s neighbours have made major concessions, offering up to thirty cents off per litre of fuel. Meanwhile, Luxembourg has opted for a “moderate” boost of 7.5 centimes, resulting in the loss of a long-standing price advantage.
Our colleagues from RTL 5 Minutes have taken a closer look at the different fuel discounts offered in the Greater Region, but also elsewhere in Europe.
In Luxembourg, the price of fuel has been decreased by 7.5 cents per litre since Wednesday 13 April. The government promised this aid at the end of the tripartite negotiations with trade unions and employers. This discount is in effect until 31 July 2022. The overall cost of a 50-litre tank of fuel for motorists is thus €3.75 less than under “regular” prices.
It is worth noting, however, that from July, residents and cross-border workers will benefit from an energy tax credit, which is intended to compensate for rising energy prices (and the postponement of a wage indexation), and will result in a salary increase for all those earning less than €100,000 per year in Luxembourg.
Following a significant increase in fuel prices in March, the French government decided to offer a substantial discount at the pump. This became a reality on 1 April, when a fuel discount of 18 cents per litre was implemented throughout mainland France (17 cents in Corsica, where VAT is lower, and 15 cents in the French overseas territories, where there is no VAT on petroleum products).
This discount, which was supposed to expire on 30 June, is expected to be extended beyond that date, although it should eventually be replaced by a “permanent and targeted” scheme based on income criteria and the usage of the vehicle for business purposes.
German motorists were relieved to see fuel prices drop on Wednesday 2 June, as a result of the government’s decision to reduce taxes in the face of inflation. In addition, the German government introduced the 9-Euro-Ticket, a monthly pass that allows anyone to travel across the country via public transportation for €9.
These two flagship measures of Olaf Scholz’s government to lower household bills are in effect for the next three months.
Thanks to a reduction in taxes to the minimum allowed by the EU, the price of petrol fell by around 30 cents per litre, and that of diesel by 14 cents.
Belgium has chosen to lower VAT on energy (natural gas, electricity, and district heating) and to reduce excise duties on fuel. The poorest Belgian households also benefit from the extended “social rate” on electricity and natural gas.
As a result of a financial aid applied since 19 March, Belgians pay 17.5 cents less for each litre of fuel.
