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Luxembourg extends fuel discount of 5 cents until the end of February
Luxembourg is keeping its discount of 5 cents per litre on diesel and petrol for two more months, until 28 February 2027. After that, the measure ends for good.
The Luxembourg state will keep covering 5 cents per litre, VAT included, of the price of diesel and petrol until 28 February 2027. After that, the discount ends for good.
This is set out in an addendum to the tripartite agreement of 8 June, signed in Senningen on 29 October after meetings on 20 and 29 October.
Prime Minister Luc Frieden signed for the government, alongside the employers' organisation UEL, the unions OGBL and LCGB, the civil service union CGFP and the Chamber of Agriculture. They will meet again by February at the latest.
Excise duty and CO2 tax
The discount has applied since 1 July through an excise cut on petrol and diesel of just over 4 cents per litre, which makes 5 cents at the pump with VAT. It was originally due to end on 31 December.
The draft budget for 2027 also puts the CO2 tax at 45 euros per tonne this year and says a rise to 50 euros per tonne is being considered for 2027. That is a plan, not yet a decision.
What it means at the border
In Germany, the energy tax cut on petrol and diesel, about 17 cents per litre including VAT, expires at the end of 2026, according to the German federal government. Berlin aims to bring in a temporary fuel price cap by 1 January, but nothing has been decided yet.
So in January and February Luxembourg keeps its discount while the German one is already gone. From 1 March, the Luxembourg discount is gone too. If you fill up across the border, the price gaps will shift in the first quarter.
