Lithuania's finance minister says diesel prices do not warrant emergency action

VILNIUS - Lithuania's fuel market is not yet in a dramatic enough situation to warrant emergency intervention, Finance Minister Taurimas Valys said, as average diesel prices reached 2 euros per litre.

Valys reiterated that measures would only be necessary if oil prices remained above 100 U.S. dollars per barrel for several consecutive days. On Tuesday, Brent crude was trading at 79.36 U.S. dollars per barrel.

"We have certainly not reached any critical threshold now. Given the fluctuations seen today and last week, intervention is not always necessary. We do not see a dramatic situation at the moment," Valys told reporters on Wednesday.

The minister said both tax and non-tax measures to mitigate prices had been "refined", but there was currently no basis for their implementation. Valys noted that one such measure would involve a reduction in fuel excise duties.

According to the Lithuanian Energy Agency, the average price of diesel in Lithuania stands at 2.027 euros per litre, while petrol averages 1.778 euros.

Prime Minister Mindaugas Sinkevicius previously said the government would take action to cushion the impact if high fuel prices persisted over a longer period.

Energy Minister Lukas Savickas also said earlier that temporary price management measures would be considered if prices deviated from European or regional trends for an extended period.

Following the outbreak of conflict in the Middle East in mid-April, Lithuania reduced the excise duty on diesel by 6 cents for two months. The decision was made by the former government led by Inga Ruginiene.