Fuel prices in Luxembourg hit record lows

The end of April 2025 brought Luxembourg drivers an unexpected gift: petrol and diesel fell in price to levels the country had not seen since February 2022. This was a breath of fresh air for motorists who had long suffered from record fuel costs since the Covid-19 pandemic.

Diesel in Luxembourg now costs €1,367 per litre. This price is one of the lowest since February 2022, when the war in Ukraine broke out and uncertainty swept the oil market. In previous years, diesel briefly fell below this level only twice: in May 2023 (€1,376) and in September 2024 (€1,368). The rest of the time, diesel cost around €2 per litre and was above €1.50 at the beginning of 2025.

Now diesel is once again the cheapest fuel - a role reversal as it has often been more expensive than petrol for the past three years, which is historically atypical for Luxembourg.

Petrol has not been left behind either. The price of 95-octane petrol in April 2025 was €1.45 per litre. A year ago the price was €1.674 and at the beginning of this year it was €1.55. Thus, there has been a steady and rather rapid decline.

Although current prices seem low compared to recent years, they are still higher than during the lockdown period, when oil was so cheap that a litre of diesel could be bought for less than €1. However, those times are already seen as an almost unreal episode in the history of the global economy.

Falling fuel prices have wider implications. It reduces the cost of transporting goods, makes mobility more affordable and may slow inflation, which has been a pressing threat to Europe in recent years. For many households, lower fuel prices provide a tangible relief from everyday costs.

Nevertheless, economists warn: oil markets remain highly volatile and new geopolitical crises could quickly send prices back up.