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What makes up the petrol price in Luxembourg?

Data from 19 October 2026 · European Commission Weekly Oil Bulletin

You pay €1.788 per litre for petrol in Luxembourg. Of that, €0.786 (44.0%) is tax and €1.002 is the product itself — crude oil, refining, transport and the retailer's margin combined. The tax is made up of €0.526 excise duty and €0.260 VAT at 17%.

Fuel is one of the most heavily taxed products in Europe, and the split between what the fuel costs and what the state collects explains most of the price gap between neighbouring countries. Here is exactly how the money you pay for each litre is split up in Luxembourg, using the European Commission's weekly figures from 19 October 2026.

Petrol The €1.788 litre, component by component

Product cost 56% Excise duty 29% VAT (17%) 15%
Component Per litre Share
Product cost €1.002 56.0%
Excise duty €0.526 29.4%
VAT (17%) €0.260 14.5%
Total tax €0.786 44.0%
Pump price €1.788 100%

What each part actually is

Product cost — €1.002

The fuel itself: crude oil, refining, storage, transport to the station and the retailer's margin. The European Commission reports these as a single figure. This is the part that moves when oil markets move — and it is broadly similar across the EU, because everyone buys on the same world market.

Excise duty — €0.526

A fixed amount per litre set by the national government, charged whatever the oil price does. Excise is the single biggest reason a litre costs more in one country than in its neighbour: it does not fall when crude falls.

VAT (17%) — €0.260

Value added tax at 17%, applied to everything above — including the excise duty. That is why VAT is a tax on a tax, and why a rise in crude prices raises the tax take automatically.

What that means for a full tank

Filling a 50-litre tank in Luxembourg costs about €89.40 at today's price. €39.31 of that goes to the state and €50.09 covers the fuel itself. Put differently: roughly 44.0% of every fill-up is tax.

Luxembourg versus the rest of the EU

At 44.0%, the tax share in Luxembourg is 0.6 percentage points below the EU average of 44.6%. Across the 27 member states Luxembourg ranks 18th by tax burden on petrol.

The most heavily taxed petrol in the EU right now is in Netherlands (53.0%); the lightest burden is in Poland (29.8%).

How it has changed over the past year

We do not yet have a full year of comparable breakdown data for Luxembourg.

Frequently asked questions

How much of the petrol price in Luxembourg is tax?

44.0% — €0.786 of every €1.788 litre. That is €0.526 in excise duty and €0.260 in VAT.

Why is fuel cheaper in some neighbouring countries?

Almost always because of excise duty, not the fuel itself. Every EU country buys on the same world market, so product cost is similar everywhere (€1.002 per litre here). What differs is the fixed duty each government adds — and the VAT rate applied on top of it.

Does VAT apply to the excise duty as well?

Yes. VAT at 17% is calculated on the full price including excise, so it is charged on the tax too. This is why the total tax take rises automatically whenever crude oil gets more expensive.

When does this data update?

Weekly. The figures come from the European Commission's Oil Bulletin, which member states report every Monday and the Commission publishes mid-week. The numbers on this page are from 19 October 2026.

What is included in "product cost"?

Crude oil, refining margin, storage, transport to the filling station and the retailer's own margin — reported by the Commission as one combined figure of €1.002 per litre. It is not broken down further at source.

See also

Fuel price breakdown in other countries

Source: European Commission — Weekly Oil Bulletin. Data from 19 October 2026 · European Commission Weekly Oil Bulletin.