Lithuania takes rising fuel prices seriously, awaits market trends

Lithuanian Minister Lukas Savickas acknowledged that the government views the current rise in fuel prices with seriousness, drawing lessons from past experiences that necessitate prepared and timely solutions. He pointed out that while prices are increasing, they remain below the European Union average for both gasoline and diesel.

“

The situation is indeed one that requires serious attention. Lessons from the recent past show that solutions need to be prepared and in advance.

Savickas explained that market volatility, particularly due to the conflict in the Middle East and disruptions in shipping, has caused fuel prices to fluctuate significantly. He expressed hope that the current price surge is temporary. However, he assured that if the situation does not improve, the government will consider both long-term and short-term measures, including potentially reducing excise taxes temporarily.

The minister stressed that Lithuania's fundamental challenge is its dependence on imported fossil fuels. Reducing this reliance, he argued, is the systemic and consistent way to become less vulnerable and more resilient. This long-term strategy is paramount, but Savickas reiterated that the government is prepared to implement quicker measures if necessary, such as the aforementioned excise tax reduction.

“

Today, we can look at comparisons with the European Union averages for both gasoline and diesel prices – we are still definitely below the EU average.

He referenced past government actions, like temporarily lowering diesel excise taxes until June 15, which were funded by surplus VAT revenues collected due to higher fuel prices. This measure was calculated to reduce the final price for consumers by approximately 6 cents per liter. Savickas indicated that such effective tools would be revisited if the current price trends prove unfavorable.

“

Dependence on imported fossil fuels is the essential problem. Reducing it systematically and consistently makes us less vulnerable and more resilient. This is the long-term answer.