ACL Calls on Government to Take Action over Soaring Fuel Prices

The Automobile Club of Luxembourg (ACL) has urged the government to take action in response to rising fuel prices.

In a statement released on Tuesday, the ACL noted that, whilst everywhere in Europe has been impacted by surging fuel prices, this increase has been most pronounced in Luxembourg for over a year. Citing Eurostat, the association recalled that fuel prices rose by 31% in Luxembourg in September 2021, representing "the largest year-on-year increase in Europe".

Althouth fuel prices remain higher in neighbouring countries, the increases recorded in these countries are significantly lower than those in the Grand Duchy. For instance, fuel prices rose by 27% in Germany, by 18% in Belgium and by 17% in France over one year (between September 2020 and September 2021), according to Eurostat.

In light of such figures, the ACL has called on the Luxembourg Government to "act without delay" and not wait for the introduction of Europe-wide measures. In the very short term, the association is seeking the establishment of new financial aid schemes for individuals and professionals in order to mitigate the increase in fuel prices. Such financial aid should be given to motorists who have no other means of transport than their own vehicle to get to work, such as people working shift schedules, or to exercise their profession.

Using data available from the start of the year through 28 October 2021, ACL experts calculated that the price of a litre of diesel rose by 35.43% over one year (from €1.047 to €1.418 per litre). The SP95 is now 33.04% more expensive than last year (€1.502 compared to €1.129 in 2020), whilst the SP98 increased by 31.07% (€1.565 compared to €1.194). The ACL noted that the electricity market has also experienced a surge in wholesale prices. 

Overall, ACL experts found that a motorist travelling about 20,000 km with a diesel vehicle consuming nearly six litres must now bear an additional cost of €445 compared to last year. For the same distance travelled with a car using SP95 and consuming seven litres of fuel, the difference is €522 over one year.

The ACL recognised the role played by the current crisis in the oil market in these increases, but also placed some of the blame on the introduction of the CO2 tax earlier this year, which saw the price of diesel increase by five to six cents per litre.

As such, the ACL has joined the "many voices" in Luxembourg calling on the government to abandon plans to increase the tax. The association argued that an additional rise in fuel prices would only widen the inequalities between residents, stressing that individual mobility "must remain affordable for the entire population".