The decision to cut excise duty on diesel already had an impact, Lithuanian Energy Minister Zygimantas Vaiciunas said on April 22.
“The crisis is certainly not over. There was definitely an effect from the excise cut. There is that psychological price of two euros per litre for diesel, and that has been pushed down,” Vaiciunas told LRT RADIO.
“The measures were certainly appropriate as they produced a certain effect, but long-term sustainability is needed,” he added.
Vaiciunas emphasised that the reduction in excise duty affected prices gradually.
The minister also mentioned a European Commission proposal to tax the windfall profits of oil refineries, including Orlen’s operations in the region. He said Lithuania would coordinate its actions with Poland to ensure fuel supplies are not disrupted.
“One of the proposals submitted to the European Commission concerns oil refineries and the taxation of those unplanned profits. We are talking about the Orlen company, and coordination of actions is requested, which is what we plan to do. If taxes were to be introduced for these companies, they should be coordinated so that we do not run out of diesel or other types of fuel,” Vaiciunas said.
According to the Lithuanian Energy Agency, the average price of diesel currently stands at 2.05 euros per litre.
Last week, the Seimas approved the excise reduction for a period of two months. Following the president’s signing of the amendments, diesel prices in Lithuania decreased by approximately 5 cents. (LRT)