The European Commission published its revised Energy Taxation Directive (ETD) on 14 July 2021, which was withdrawn by the European Commission in 2015. Lubricants are outside of the scope of the ETD, but UEIL would prefer that lubricants were within the scope as this will promote a level playing field for lubricants within the EU.
Related to UEIL’s objective to prevent the inclusion of lubes under the Excise Movement and Control System (EMCS), certain EU Member States are concerned about increased fraud with lubes across Europe and are once again increasing the pressure to include lubes under EMCS. UEIL will continue its outreach to EU Member States in the coming months to express its concern and will discuss with the European Commission the option of a definition of ‘light lubes’ that might be included under EMCS in the near future.
The European Commission has also decided to reduce the quota on GP II to 75K tonnes in the first half of 2022 and to 0 in the second half of 2022. UEIL is lobbying for a higher quota as the demand is higher than the supply in Europe on GP II and for lubricant blenders it is very difficult to change from one producer to another.