Luxembourg places a minimum stockholding obligation on industry.
All importers of crude oil and/or petroleum products are obliged to maintain stocks of petroleum products equivalent to at least 90 days of deliveries into domestic consumption during the previous calendar year. This applies to each of the three categories covered by the EU compulsory stock obligations (gasoline, distillates and fuel oil).
Since the country has no refining capacity, all compulsory stock obligations must be held in the form of finished products.
Compulsory stocks are held by oil companies, and are typically co-mingled with commercial stocks. Total oil stocks in Luxembourg tend to be only about 20 days of supply in terms of total oil consumption.
Luxembourg has formal bilateral agreements with Belgium, France, Germany and the Netherlands, and typically makes full use of the allowance permitted for holding stock obligations abroad. In practice, most stocks are held in the ARA (Amsterdam, Rotterdam and Antwerp) area.
Stock tickets are permitted. There are no restrictions on the total volume of stock tickets held in Luxembourg or abroad (within the limitations of the bilateral agreements). Due to the lack of storage facilities and the growing stockholding obligations, the proportion of tickets in the total of physical volume of finished products increased in recent years and now stands at 84%. Stock tickets must be certified by the administration of the country concerned in order to be counted as contributing to coverage of the obligation.
More information on oil and gas emergency policy
See also Closing Oil Stock Levels in days of Net Imports
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