Luxtoday

The state not ready to pay 14.5 million euros per month for a gasoline discount

Last time updated
02.09.22
The state not ready to pay 14.5 million euros per month for a gasoline discount

On Wednesday, August 31, the gasoline discount that’s been in effect since spring has ended. From mid-April to the end of August, gasoline and diesel fuel at every gas station in the country cost 7.5 eurocents less per liter. Grand Duchy’s gas pump tourism days have ended.

The government’s decision not to extend the discount caused outrage among some members of parliament. Especially when put against this background: in France the same discount was not just extended, but raised from 18 to 30 eurocents per litre. The parliamentarians felt that this price advantage loss will hurt state’s finances. Refueling in Metz is now much cheaper than in Dudelange. This means that soon Luxembourgers will become pump tourists at French gas stations.

However, the ministers of energy, the environment and the economy jointly responded to the parliament’s unrest. According to them, for four and a half months, while the gas discount was in effect, the state spent has 65 million euros to maintain it. That’s an average of about 14.5 million per month and already a hefty sum. If a discount similar to the French one is introduced, the consequences for the Luxembourgish budget could be a magnitude greater. The potential profit will be absorbed by the measure’s cost.

In addition, Luxembourg continues to move towards greater environmental friendliness, the ministers have stressed. Higher gasoline prices mean less gasoline sold. Which will help reduce CO2 emissions in the country. The state’s currently aiming for 55% reduction by 2030. So the government intends to further reduce sales of gasoline and diesel fuel. Simply put, gas pump tourism will not return to Luxembourg.

Fuel quickly grew in price even before the end of the discount. Now prices are skyrocketing. 95 brand petrol costs 1.716 euros in Luxembourg, 98 — 1.924 euros, diesel fuel — 1.895 euros. A full 50-litre tank of 95 brand in Metz costs 1 euro less than in the Grand Duchy. Diesel fuel is cheaper by 10 euros for a full tank. And 98 marks — by full 18 euros.