Lithuania’s Energy Minister has ordered Orlen Lietuva, the Baltic States’ only oil refining and import company controlled by Poland’s Orlen, to reduce its oil reserves by 80,000 tons and immediately supply that amount to the market.
The Energy Ministry said on March 17 the decision was taken in response to disruptions in the global oil market and growing supply risks.
The move is also based on a coordinated action plan by the International Energy Agency, which oversees collective measures to stabilise energy markets during supply shocks.
Vice Energy Minister Gabrielius Gorbacevskis said the fuel could reach the market as early as this week.
He added that the measure should be accompanied by additional national actions to ensure long-term and effective solutions to rising fuel prices.
According to the vice minister, increasing fuel prices in Lithuania, Europe and globally are directly linked to geopolitical tensions in the Middle East, particularly the conflict involving Iran, which is raising risks to global oil supply.
Gorbacevskis said the financial burden of replenishing the released reserves would not be passed on to consumers, as this would be done once market prices stabilise.
The ministry said that while oil and fuel supply security in the Baltic States remained ensured, global market volatility was having a direct impact on regional prices. It emphasised that coordinated international measures were important to protect consumers and the economy from sharp price spikes and to help stabilise the market. (LRT)