Included in the government’s “Solidaritéitspak” (“solidarity package”), this measure reduces the price of fuels directly at the pump. The compensation is temporary, however. As for individuals, the reduction for heating fuel will remain in place until the end of 2022. Fuel for industrial, agricultural and horticultural use will return to the full price at the end of July 2022.

Finance minister Yuriko Backes (DP) in a statement says: “This measure, provided for in the tripartite agreement, supports households and businesses in coping 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 these difficult times.” Through this subsidy for commercial and industrial sectors, the state hopes to avoid an impact on the cost of products and services.

Costing the government an estimated €12m, the measure has been called meaningless by mobility and defense minister François Bausch (déi Gréng). Bausch in an interview with reporter.lu had explained that the measure was meant as an act of sympathy to put at ease citizens. Ultimately, low-income households wouldn’t get as much out of the measure as those who could afford the expensive cost of fuel anyway.

Overall, the measures taken in the framework of the so-called Solidaritéitspak (solidarity package) are valued at around €750m.