Lithuania currently sees no basis to intervene on fuel prices, finance minister says

VILNIUS - Finance Minister Taurimas Valys has reiterated that there is currently no basis for the government to intervene to reduce fuel prices for consumers.

"There is no basis yet," Valys told reporters at the Seimas on Monday. "Since we do not directly influence this trend, we do not want to artificially sensitise the public or create unnecessary expectations until the situation escalates."

According to Valys, the government is considering various scenarios, including oil prices reaching 100 US dollars per barrel or fuel prices hitting "a certain threshold."

"There are tax and non-tax measures. We have already discussed all options with cabinet members. We have outlined specific scenarios for when these will be activated," the minister said.

Valys added that any measures, if taken, would be announced officially by the government.

"We expect to centralise this communication through the Office of the Government. While the Ministry of Finance is responsible for specific measures, other ministries have already started making some information public. A centralised announcement will be made once there is a concrete reason for it," Valys said.

Last week, Valys mentioned that one possible measure would be a reduction in fuel excise duties. Prime Minister Mindaugas Sinkevicius has previously stated that an excise cut would be considered if diesel prices exceeded 2.2 euros per litre.

On Monday, Brent crude was trading at 84.48 dollars per barrel, while West Texas Intermediate stood at 78.87 dollars.

According to the Lithuanian Energy Agency, the average price of diesel in Lithuania was 2.016 euros per litre on Thursday, while petrol stood at 1.765 euros.

In April, following the outbreak of conflict in the Middle East, Lithuania reduced the diesel excise duty by 6 cents for two months. Although the oil market subsequently stabilised, shipping in the Strait of Hormuz has again ground to a halt following renewed shelling.