Lithuania may lower the excise tax on diesel if oil prices rise to $100 per barrel
Lithuania may temporarily reduce the excise tax on diesel fuel if global oil prices exceed $100 per barrel. The country’s government will consider this level as a threshold for the possible introduction of additional temporary support measures.
Lithuanian Finance Minister Taurimas Valis stated that it is too early to introduce such measures at this time. According to him, the price of oil has risen to a level that is cause for concern, but is not yet catastrophic.
If temporary measures regarding excise taxes become necessary, the government will consider that possibility, Valis said. This was reported by European Truth, citing LRT.
Lithuania last temporarily reduced the tax on diesel fuel in mid-April, after hostilities in the Middle East caused oil prices to rise. At that time, the previous government reduced the excise tax by 0.06 euros per liter for a period of two months. The following day, retail prices fell by about 5 cents.
Poland also considered similar measures. In March, its government announced a reduction in the VAT on fuel from 23% to 8%, a cut in the excise tax to the EU minimum, and the daily setting of price caps on motor fuel. At the same time, on July 17, Polish Prime Minister Donald Tusk stated that the government could no longer sustain the fuel price subsidy program.
