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FuelsDo service stations still have a future in Luxembourg?
LUXEMBOURG – While TotalEnergies has unveiled its strategy by joining forces with Canadian Couche-Tard, an entire sector will have to reinvent itself.
The TotalEnergies stations in Luxembourg will be co-managed with the Canadian Couche-Tard.
Editpress/Julien Garroy
By announcing, in mid-March, the sale of 1,600 service stations in Europe, TotalEnergies triggered an earthquake in the sector. But many expected it a little, between pressure on C02 emissions and lower volumes sold. The 45 stations in Luxembourg are expected to switch, by the end of the year, to co-management with the Canadian food and fuel distribution group Couche-Tard.
The symbol of a transition that other groups might follow with, on the horizon, the end of the sale of thermal cars in 2035, despite a tolerance for synthetic fuels. According to the secretary general of GEML (Groupement Energies Mobilité Luxembourg), the former Luxembourg oil group, Jean-Marc Zahlen, Luxembourg recorded in 2022, a drop of around 14% in diesel sales and an increase of 3.5 % for species.
Doomed to disappear?
“These developments confirm the trend since 2019, particularly at the level of diesel, where the sector is no longer competitive with Belgium (increase in excise duties, introduction and increase of the CO tax2)”. The effect of the war in Ukraine is “very difficult to isolate on sales volumes”, he specifies.
Ultimately, are the stations doomed to disappear from the country? Their ambitions on electric charging seem in any case reduced. “Recharges will mainly be done at home or at work. The service stations will then cover the demand of motorists not having the possibility of recharging in these places, emergency recharging or motorists in transit. Therefore, there will probably be a lesser need for service stations in the territory, ”admits the GEML.
Tobacco, alcohol and synthetic fuels
“Sales excluding fuel are essential for the profitability of service stations”, specifies the group. In particular those of tobacco and alcohol. According to our information, in one of the major groups active in Luxembourg, they currently represent 40% of turnover once morest 60% for the fuel part. With the ambition to quickly reach equilibrium.
The open door, under pressure from Germany, to synthetic fuels in 2035 also offers a perspective to Grand-Ducal stations, even if the market is no longer considered attractive compared to its neighbours. Some groups are even planning the installation of cleaner fuel stations (LNG, liquefied natural gas) in the border areas of Luxembourg.
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