Faced with change and future challenges, Luxembourg’s petrol stations are adapting to the country’s energy transition. This adaptation will not be without consequences.
As Luxembourg intensifies its transition to electromobility, the country’s petrol stations are at a turning point. Historically focused on the distribution of fossil fuels, they must now reinvent themselves to meet the new expectations of motorists, climate imperatives and technological developments.
With around 230 petrol stations recorded in 2023, Luxembourg’s network remains one of the densest in Europe per capita, with one petrol station for just under 3,000 inhabitants. The network of refuelling points has remained relatively stable over the last twenty years, despite a gradual decline in the number of stations within the country, offset by an increased concentration at the borders. This configuration reflects Luxembourg’s strategic role in cross-border fuel trade.
On the other hand, in recent years, professionals in the sector have seen fuel sales shift in a different direction. Unsurprisingly, petrol volumes have increased, while diesel has been steadily declining since 2019. “We need to differentiate between the pre-2019 and post-2019 periods. The decline in diesel sales since 2019 can be explained by the increase in excise duties and the introduction and increases in CO₂ tax in Luxembourg, which has made prices less competitive for heavy goods vehicles, which benefit from excise duty refunds in certain neighbouring countries, notably Belgium and France. The tax increases are part of Luxembourg’s decision to reduce a large proportion of greenhouse gas emissions in the transport sector by shifting fuel sales to third countries. This is even more evident in diesel sales at motorway service stations, where sales volumes have fallen by more than 50% since 2019, a trend that is continuing and accelerating in 2025,” explains Éric Bleyer, president of the Groupement Énergies Mobilité Luxembourg (GEML).
Another direct consequence is the decline in government tax revenues.
On the other hand, statistics clearly show the effect of the shift from diesel engines to more petrol engines on the roads. ‘However, the volumes are far from compensating for the losses in diesel,’ adds Éric Bleyer.
In detail, in 2023, petrol stations sold 409,927 metric tonnes of petrol and 1,076,549 metric tonnes of diesel, compared to 364,655 metric tonnes of petrol and 1,827,760 metric tonnes of diesel in 2019. This represents an increase of 12.42% for petrol and a decrease of 41.10% for diesel. It should be noted that the volume of fuel oil sold fell by 27.20% over the same period, while jet fuel (aviation fuel) increased by 39.13%.
“The significant decline in diesel sales since 2019 has naturally led to a sharp drop in government tax revenues from fuel. We can now estimate tax revenues of around €1.5 to €1.7 billion from the sale of fuel, tobacco, alcohol and other excise goods at service stations,” said Éric Bleyer. For information, the Luxembourg state budget is estimated at €28.7 billion for the country’s total revenue.
Petrol stations seeking diversification
Faced with these upheavals, Luxembourg petrol stations have undergone a profound transformation. According to Éric Bleyer, president of the Groupement Énergies Mobilité Luxembourg (GEML), they are set to become ‘multi-energy and multi-service hubs’. Electric charging, catering, parcel collection, postal services, food sales: stations are transforming to meet the expectations of an increasingly diverse customer base. ‘Stations are no longer just places to refuel. They are becoming essential service points for motorists, integrated into their daily lives,’ he explains. The network already has more than 200 electric charging stations, and this number is constantly increasing. However, the installation of this infrastructure faces several obstacles: lack of space, insufficient electrical power, complex administrative procedures and competition from the public Chargy network, which Éric Bleyer, who has just moved into the private sector, considers to be unfair.
Fast charging… but expensive
However, are petrol stations not doomed to disappear in the next 30 to 50 years with the rise of home charging? Especially since competition between home charging and fast charging at petrol stations will be fierce. The latter is generally much more expensive, even double the 0.30 pence per kWh charged at home. Éric Bleyer remains confident. “While the majority of electric vehicle charging will take place at home or at work, a significant portion of the population will not have access to these solutions. Residents of buildings without private parking or employees without charging stations at the office will have to turn to fast charging infrastructure. The petrol station sector is positioning itself to meet this need, as well as the needs of emergency charging and certain professional sectors, by installing fast chargers. There is no question of competitiveness between charging at home and at work versus fast charging. The latter meets other needs and will always be more expensive, given the very significant initial investment,” explains Éric Bleyer.
The GEML president steers the debate towards another topic: access to energy for the most financially vulnerable. “Fast charging, although necessary, remains more expensive. There is therefore a risk that the least fortunate will only have access to the most expensive form of mobility energy. This is a major social issue that must be anticipated,” warns the GEML president.
Alternative fuels under consideration
The GEML advocates a technologically neutral approach. Synthetic fuels (eFuels) and HVO100 are considered viable options for rapidly decarbonising heavy transport while maintaining tax revenues.
‘Today, no one can predict what the dominant fuel will be in 10 or 20 years’ time. We must let technologies evolve and allow all solutions to develop,’ says Bleyer. Discussions are underway with the government to integrate these fuels into the national strategy.
2035 in sight ?
One might think that professionals in the sector see 2035 as a wall, heralding the end of their business. But this is not the case. “The end of combustion engines in 2035 will only affect new vehicles. The vehicle fleet will remain mixed for several years, and stations will have to continue to supply fuel while investing in alternative energies. The number of stations may decrease, but those that remain will be more versatile, more technological and more connected to users’ needs. The sector will adapt to remain competitive and meet consumer needs. The role of GEML will be to support this transition without suffering it,” concludes Éric Bleyer.
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