Lithuanian industrialists seek state support amid energy concerns

VILNIUS - Lithuanian industrialists are calling for state support to build reserves and secure supply chains as Europe faces rising fuel prices and potential energy shortages.

Vidmantas Janulevicius, president of the Lithuanian Confederation of Industrialists, said the sector requires tax breaks or financial support for stockpiling, as well as state guarantees for companies seeking new supply sources.

According to Janulevicius, following a temporary reduction in diesel excise duties, further adjustments are needed, and reinvested profits should remain untaxed.

"Specific mechanisms are required: tax incentives or partial financing for critical stockpiling, state guarantees for companies expanding supply sources or maintaining larger reserves, and liquidity measures for sectors directly dependent on uninterrupted supply," Janulevicius said.

Janulevicius noted that ongoing geopolitical tensions pose a risk of supply disruptions for essential resources in Europe, which is heavily dependent on raw material imports, impacting energy, logistics, and manufacturing.

"States will have to address not only the issue of prices but also the physical distribution of resources," the businessman said.

Janulevicius previously stated that as oil prices rise due to conflict in the Middle East, the state should provide business support if oil prices reach 130-140 US dollars per barrel.

Finance Minister Kristupas Vaitiekunas has said that measures to mitigate fuel prices would be considered if the conflict persists.

To date, 80,000 tonnes of oil have been released from the Orlen Lietuva reserve, and the diesel excise duty has been reduced for a period of two months.