As energy prices continued to rise, the Lithuanian government unveiled new crisis measures on September 7.
As presented by Finance Minister Gintare Skaiste, one of the planned measures is the extension of the VAT relief for central heating.
The zero-VAT rate is now planned for two heating seasons: from October this year until the end of April next year and from October 1, 2023 until April 30, 2024.
Meanwhile, the government also plans to extend heating subsidies for households. People will also be able to apply for compensation as early as mid-September, according to officials.
The government calculates that, under the current scheme, a family of four living in a flat of 70 square metres, with two family members earning the average wage, should not pay more than 45 euros for heating per month.
In order to reduce heating costs, the Cabinet has also proposed replacing gas with cheaper alternatives, like the polluting fuel oil.
For now, only the Vilnius City Municipality intends to use fuel oil. Siauliai, Klaipeda and Panevezys could choose to do so, Energy Minister Dainius Kreivys said.
The government also intends to increase the supply of biofuels locally, which would replace imports from Russia and Belarus that used to account for a significant market share.
All the proposed measures would be valid for only two heating seasons, until April 30, 2024. The parliament still needs to approve them. (LRT/Business World Magazine)
