The EU co-legislators are currently negotiating the revised Energy Taxation Directive that the European Commission published last year. This revised Directive is important for the lubricant sector to promote a level playing field in Europe.
Furthermore, 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 weeks 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 at the end of 2022.
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. In addition, due to the EU sanctions on Russia the demand on GP II by European blenders has even increased in recent months. Therefore UEIL hopes that the European Commission is willing to extend the transition phase on the current quota on GP II after June 2022.