Luxembourg has no plans to regulate fuel prices

In an interview with the Luxemburger Wort, Economy Minister Lex Delles explained the government’s position on record-high petrol and diesel prices. According to the minister, the current market instability is caused by military operations involving Iran; however, the Luxembourg government does not plan to resort to direct price regulation or reduce energy taxes.

A key argument against reducing excise duties is the risk of ‘fuel tourism’. Luxembourg maintains the lowest fuel tax rates in the Greater Region, and further reductions could lead to an excessive influx of motorists from neighbouring countries, which would jeopardise the country’s energy security. The government’s main priority at present is the continuity of supply, rather than artificially suppressing market prices.

The minister acknowledged that prices are unlikely to return to pre-war levels in the near future. Nevertheless, recent news of a possible ceasefire has already led to a brief fall in prices on international exchanges. As a long-term solution, the government is proposing a switch to electric vehicles, subsidising both the purchase of vehicles and the installation of charging stations.

For those who are unable to give up their cars due to living in rural areas or the nature of their work, Lex Delles recommends adopting an energy-efficient driving style. The minister emphasised that the strategic solution to reducing dependence on fossil fuel imports lies in the accelerated development of renewable energy sources within the country.