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 the 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 0 in the second half of 2022. UEIL is lobbying for a higher quota since the demand for GP II is higher than the supply in Europe, and because it is difficult to change from one producer to another for lubricant blenders. In addition, due to the EU sanctions on Russia, demand for GP II by European blenders has even increased in recent months. Therefore, UEIL hoped that the European Commission was willing to extend the transition phase on the current quota on GP II after June 2022, which has not happened yet. And the Member States are currently discussing an extension of the quota, which could take place at a later stage this year.