Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure LU-2022-16/2256 – Updated – measures in Luxembourg
|Country||Luxembourg , applies nationwide|
|Time period||Temporary, 13 April 2022 – 31 December 2022|
|Context||War in Ukraine|
Responses to inflation
– Support for fuel expenses
|Author||Patrick Thill (LISER) and Eurofound|
|Measure added||13 May 2022 (updated 09 November 2022)|
In the context of the war in Ukraine and its repercussion on fuel petrol, diesel and heating oil, the Government is committed to quickly taking the necessary legislative and regulatory measures to lower the consumer prices of petrol, diesel and heating oil.
After the Tripartite meeting, the government proposed a draft law. This was approved by the Government Council on Thursday 7 April. It will come into force on Wednesday 13 April 2022.
The consumer prices of road diesel and unleaded petrol will be reduced by 7.5 cents per litre including tax from 13 April 2022, regardless of price changes. This price reduction will be reflected directly in the prices displayed at the pump and will remain applicable until 31 July 2022. For a 50-litre tank of petrol, the saving will amount to €3.75.
Consumer prices for diesel for industrial and commercial use, as well as for diesel used for agricultural and horticultural work, fish farming and forestry, will be reduced by 7.5 cents per litre (including tax) as soon as the relevant bill is passed by the Chamber of Deputies. This measure will also remain in force until 31 July 2022.
Finally, for heating gas oil (mazout), this same reduction will apply as soon as the same bill comes into force, but will remain in force until 31 December 2022.
Regarding the financing of the measure, there is no line specified in the state budget.
No information at this time.
|Does not apply to workers||Applies to all businesses||Applies to all citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Consultation through tripartite or bipartite social dialogue bodies||Consultation through tripartite or bipartite social dialogue bodies|
Social partners' role in the implementation, monitoring and assessment phase:
This decision was taken in the framework of the Tripartite meeting held on 22, 23 and 30 March 2022. The resulting draft law was approved by the Government Council on 7 April 2022.
Approval by two trade unions: Confédération Luxembourgeoise des Syndicats Chrétiens (LCGB) and Confédération Générale de la Fonction Publique (CGFP), as well as by the Union des Entreprises Luxembourgeoises (UEL). The main union, Confédération Syndicale Indépendante du Luxembourg (OGBL), refused to sign the agreement because of differences over, for example, wage indexation.
Eurofound (2022), Reduction of fuel prices for all consumers, measure LU-2022-16/2256 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2022-16_2256.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.