On Thursday 28 April 2022, Luxembourg's Ministry of Finance announced that the Chamber of Deputies (Luxembourg's parliament) has adopted the bill allowing the temporary reduction of the selling price of 7.5 cents per litre for mazout (heating oil) and for diesel used exclusively for agricultural and horticultural work, in fish farming and forestry as well as diesel for industrial and commercial uses.
This measure, specific and limited in time, is part of the solidarity measures (Solidaritéitspak) and was decided in response to the considerable rise in the price of petroleum products in recent months.
The measure applies automatically as soon as the law comes into force and no action is required by the consumer. Indeed, the reduction will be applied directly by economic operators and will be compensated by the State. The impact on the State budget is estimated at €12 million.
The price reduction on diesel used for agricultural and horticultural work, and for industrial diesel will be applicable until 31 July 2022. As for the sale price of mazout, the reduction will be applicable until 31 December 2022.
Minister of Finance, Yuriko Backes, commented: “This measure, provided for in the framework of the tripartite agreement, supports households and businesses to cope with the rise in the price of petroleum products. Together with the other measures of the "Solidaritéitspak", this reduction also contributes to strengthening the purchasing power of households in this difficult period".
The Ministry recalled, the reduction in the sale price of 7.5 cents for petrol and diesel used as fuel was achieved through a temporary reduction in excise duties on these products, established by the Grand-Ducal regulation of 8 April 2022. This reduction, applicable since 13 April 2022, remains in force until 31 July 2022.
