The European Commission has approved a Luxembourgish state aid scheme that will help logistics companies to cope with the inflated fuel prices. Through this plan, rail freight could see up to 70% of its additional fuel expenses covered by public money.
Luxembourg greenlighted the direct grant plan domestically on 12 June. The measure was designed to mitigate the impact of rising fuel prices on transport companies against the background of the Middle East crisis and the closure of the Hormuz strait. It should help guarantee the continuity of economic activity, the Luxembourgish government says.
Moreover, the country wants to enhance the resilience of the transport sector and limit the fuel crisis’ negative impact on competitiveness. At the same time, Luxembourg’s government says, the support will help preserve companies’ investment capacity for decarbonisation and energy-efficient improvement projects.
March to December
Through the support plan, Luxembourg will offer compensation of up to 70% of the “additional fuel costs actually incurred by the companies concerned between March and December 2026.”
Besides the rail freight industry, road transportation is also eligible for support. Passenger transport companies can also apply under certain conditions.
The total sum of money available for the support scheme is €54 million. The European Commission approved the measure on 24 July under the METSAF framework. This programme allows EU Member States to put support measures in place to combat the impact of the Middle East crisis. It specifically targets agriculture, fishery, transport and energy-intensive industries.
