The GPL's examination of 2018 showed the year had been relatively decent for the fuel industry, including a 6.2% increase in sales. This increase was attributed to a number of different factors, including the aviation development which saw more jet fuel being sold.
Jet fuel alone did not account for the increase in 2018, however. Fuel sales for road vehicles also increased due to the country's economic growth, the increase of fuel costs per barrel, and some surprising developments which led to fuel tourism in Luxembourg.
The low level of the Rhine river affected water transport, in turn leading to more road transport and an increasing use of fuel. The yellow vest movement in France disrupted the fuel supply chain, which put a higher pressure and demand on Luxembourg's petrol station. Romain Hoffmann, the GPL's president, estimated that all these separate phenomena led to Luxembourg having higher fuel sales.
Looking ahead, however, the GPL believes it will mainly compete with Belgium in terms of fuel sales. On 1 May, the government's excise increase on fuel will enter into effect. Fuel excises will increase by 2 cents per litre, which, according to the GPL, could affect Luxembourg's standing as a fuel destination, especially for lorry drivers. In this sense, Hoffman explained that this would mark the first time that Luxembourg would become more expensive than Belgium in terms of fuel prices and that the sector would be heading into the unknown.
[Extract in Luxembourgish].
Hoffmann explained that this increase would cause a massive change in the industry and that the GPL does not know how the change would affect both the market or sales. Discussing lorry drivers in particular, Hoffmann noted that an international logistics lorry can travel through Europe on one fuel tank. While Luxembourg's geographic location makes it a thoroughfare for many logistics drivers, it may be that lorry drivers no longer stop in the Grand Duchy to refuel.
The government also announced that the proportion of biofuels must increase in the future. Biofuels being more expensive than fossil fuels, the GPL also believes this will see increasing fuel prices.
