Kubilius: petrol prices cannot be regulated, it is not monopoly market

  • 2012-08-23

VILNIUS - Lithuanian Prime Minister Andrius Kubilius (pictured) does not agree with Seimas' Deputy Speaker Virginija Baltraitiene who has suggested that the National Control Commission for Prices and Energy (VKEKK) should monitor petrol price and put a price cap on it.

Kubilius says that the gasoline prices cannot be regulated because it is not a monopoly market.

"I do not know the full content of Baltraitiene’s idea but I just want to note that the heat and energy prices are regulated by the VKEKK because it is a monopoly price system. Meanwhile, we can not claim that there is a clear monopoly in the petrol market," PM said in an interview with radio Ziniu on Thursday.

As ELTA has previously reported, Baltraitiene said that Lithuania did not have an institution for petrol price monitoring which explained why the prices were going up.

"Fuel is part of energy sector. I think it is high time we set some kind of limit, a minimum or a maximum petrol price at our gas stations. This could be done by the VKEKK which is responsible for energy prices. Perhaps it could set a price cap rather than a precise price of petrol. That might sound like a bit of a heresy but I see no other means to control it," she said.

The politician said that a petrol price hike would results in higher prices of goods and services.