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Fuel Price Shift in Benelux Region
Luxembourg has lost its position as the cheapest fuel destination near the Netherlands, with Belgium now offering lower prices at some stations. While Luxembourg's average petrol price remains €1.45 compared to Belgium's €1.58, certain unmanned Belgian stations away from highways are pricing fuel as low as €1.40 per liter.
Government Price Controls
Luxembourg maintains a government-set maximum price of €1.458 per liter, with nearly all stations charging exactly this amount. This contrasts with Belgium's more variable pricing where independent stations can offer significant discounts.
Impact of CO2 Taxation
The shift follows Luxembourg's 2021 introduction of a progressive CO2 tax that increases annually. While global oil prices have decreased due to increased supply and euro strength against the dollar, Luxembourg's tax structure has limited price reductions compared to neighboring countries.
Regional Price Comparisons
In the Netherlands, average fuel prices have decreased to €1.89 from March's €2.19, with some stations offering €1.79. Germany maintains prices around €1.65. Research indicates that despite significant price differences, only a small percentage of border-region drivers consistently seek cheaper fuel abroad.
Future Price Projections
The Netherlands faces a potential 25-cent per liter price increase when temporary excise tax reductions expire on January 1, 2026. These reductions were initially implemented in April 2022 following Russia's invasion of Ukraine.
