Petrol exceeds 2 euros per litre for the first time in Luxembourg. (Photo: Guy Wolff/Maison Moderne/Archives)

Petrol exceeds 2 euros per litre for the first time in Luxembourg. (Photo: Guy Wolff/Maison Moderne/Archives)

Despite a state subsidy, fuel prices continue to climb. For the first time in Luxembourg, the price of unleaded 98 petrol crosses the €2/l threshold. The increase does not spare other fuels either.

Another blow is dealt to the finances of households and businesses on 17 May. The new maximum prices for petrol products communicated by the government on Monday 16 May, show a significant increase in prices at the pump. On Tuesday, Super 98 will cost €2.031/l (+0.037€/l). Super 95 is up €0.065/l to €1.871/l.

Diesel, which exceeded €2 per litre at the beginning of March, has since dropped in price. Relatively stable for several weeks, it will cost €1.779/l on 17 May (+€0.034/l).

These prices take into account the automatic government rebate--€0.075/L of petrol or diesel--which came into . The measure, taken by the government to soften the blow on the budget of households and businesses, had been criticised by several political figures. 

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

, opposition parties déi Lénk and the Pirate Party had said that they did not support the measure either, as it would go against environmental targets and mainly benefit those who already are at a social and financial advantage. 

This story was first published in French for Paperjam and translated and edited for Delano. Additional reporting by Tracy Heindrichs.