Fuel in Luxembourg: “We fear a sharp decrease in sales at the French border”

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Fuel in Luxembourg“We fear a sharp drop in sales at the French border”

LUXEMBOURG – Significant assist introduced on gasoline costs in France worries Luxembourg oil firms.

A liter of gasoline will quickly price €1.50 in France, with a 30 cent low cost in September and October 2022. The information does probably not reassure Luxembourg Petroleum Group (GPL). “Of course there may be a danger of a discount in sales at the French border, just like what has occurred at the German border in latest months. In May and June, there was a 30% to 40% drop in quantity,” mentioned LPG Secretary General Jean-Marc Zahlen.

“With the introduced low cost, we are going to attain Luxembourg’s excise stage in France. It is troublesome to foretell what the impression will probably be on the quantity offered in the nation”. The reality stays that Luxembourg, which offered 2 billion liters of diesel and 500 million liters of gasoline in 2019, has already seen diesel sales soften by 25% in 2020 amid Covid and the CO tax, and so they have barely recovered since then.

“Breaking Boundaries”

And the August extension of the low cost to 7.5 cents can solely “restrict the losses for oil firms”, believes Jean-Marc Zahlen. “According to European guidelines, Luxembourg can’t go decrease than 7.5 cm in phrases of excise obligation. The closing lever can be a discount in VAT, once more extremely regulated, or a direct subsidy paid on gasoline oil.

Hard to think about as a result of to chop CO2 emissions by 55% by 2030, the authorities desires Luxembourg to promote much less gasoline. The nation desires, in response to Finance Minister Yuriko Bax, “in the medium time period, fewer foreigners will come to gasoline in Luxembourg”. The carbon tax has proven the manner. “Since 2019 it has already change into extra handy for professionals to provide gasoline in Belgium”, continued the Secretary General of GPL.

Stop the station?

Nevertheless, the oil group recollects that it represents 3,600 jobs in the nation, together with a giant a part of the stations. “This political transfer does nothing for the local weather goal as a result of it solely shifts sales to neighboring international locations and it dangers having an general impression on state revenues and employment in the sector”, notes Jean-Marc Zahlen.

For him, there may be a short-term danger of momentary closure of stations “if the stations need to be offered at a loss”. And in the medium time period “the stations might disappear. Even if it relies on many components, particularly the mutations already launched in the direction of new types of vitality”. Another concern is the administration of future demand on the stations on the French facet. “Not their goal, the variety of tracks and By the measurement of the tank, delivering very giant volumes”, slips a skilled in the sector.

Total exemptions in France, not in Luxembourg

Total Energy has determined to strengthen its low cost at the pump at all service stations in France. It will attain 20 euro cents per liter between September 1 and October 31, then 10 euro cents per liter from November 1 to December 31.

And in Luxembourg? If the most worth is mounted at the nationwide stage, “it isn’t prohibited to promote at a cheaper price”, notes the GPL, which specifies that promoting at a loss is prohibited. Next to the whole vitality, we specify important That “the Luxembourg context is completely different”, the query of making use of an exemption like France is “not on the agenda”. There can also be no plan to promote gasoline beneath the authorized most worth. TotalEnergies Luxembourg specifies that it’s going to intently monitor the worth impression scenario in France. Station closures will not be on the agenda.

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