Lithuania cabinet to consider diesel duty cut at Friday meeting

VILNIUS - The Lithuanian cabinet will meet on Friday to consider a Finance Ministry proposal to temporarily cut the excise duty on diesel fuel to curb price spikes linked to conflict in the Middle East.

"A remote government meeting will be held tomorrow (Friday) to discuss a single issue: a proposal to temporarily reduce the fixed portion of the excise duty rate for standard diesel and marked agricultural diesel until mid-June," Ignas Dobrovolskas, a spokesperson for the prime minister, said.

The ministry submitted amendments to the Law on Excise Duties in late March, proposing that the lower rates remain in effect until June 15.

The amendments seek to adjust the fixed components of the excise duty for standard and agricultural diesel, reducing the final rates to 503.6 euros and 35 euros per 1,000 litres, respectively. It is estimated that the price of diesel could drop by approximately 6 cents per litre.

Parliament will be asked to consider the tax cuts under an urgency procedure.