Luxembourg Carbon Tax CO2 2027 Calculator

How the Carbon Tax Stacks on Fuel

Luxembourg levies a CO2 surcharge on diesel, petrol, and heating oil — currently €45 per tonne of CO2 emitted for 2027, scheduled to rise to €60/t by 2030. Each liter of diesel emits ~2.68 kg CO2; petrol ~2.31 kg; heating oil ~2.66 kg. The tax is built into the pump or delivery price and is not separately itemized on the receipt.

The CO2 Credit Refund

To offset the regressive impact on low-income households, Luxembourg returns part of the CO2 revenue via a CO2-Mobilité credit on the annual income tax return — approximately €168 per household member for 2027. Larger households often receive more in credit than they pay in CO2 tax, making the scheme net-beneficial for families using less fuel than average. Households heavily reliant on driving and oil heat pay more than they get back.

Cross-Border Fuel Tourism

Luxembourg historically had lower fuel duty than DE, FR, and BE, drawing cross-border "fuel tourism." The CO2 tax narrows but does not eliminate this gap — a typical 60L diesel fill in LU 2027 still costs €5-10 less than in France due to lower base excise. Trucking firms in particular continue to fuel in LU. EU pressure may further harmonize duty by 2030.

Heating Oil Phase-Out

New residential heating oil installations are banned from 2030 under the LU climate law. Existing systems can continue but face escalating CO2 tax (€55/t in 2028, €60/t in 2030). Conversion subsidies (Klimabonus Wunnen) cover 25-40% of heat-pump replacement cost for owner-occupied homes, payable through MyGuichet portal. Combined with the CO2 tax escalation, the payback on conversion now hits 6-8 years.

Sources: impotsdirects.public.lu CO2 2027, mev.gouvernement.lu climate law. Last updated: May 2026.