Lithuanian Prime Minister suggests potential plea from Baltics and Poland to postpone fuel price increases in Brussels
Breaking News:
VIPELKA - Lithuania, united with Latvia, Estonia, and Poland, is gearing up to interrogate the European Commission regarding a potential hold on regulations enforcing a spike in fossil fuel costs, set to commence in 2028, as disclosed by Prime Minister, Gintautas Paluckas, on February 1st.
"We are in discussions with the Baltic prime ministers, and Poland has also taken a keen interest, requesting the European Commission to reconsider the planned adjustments to the emissions allowance system," forthrightly shared Paluckas with reporters.
These EU mandates necessitate an accelerated increase in the carbon dioxide (CO2) component for polluting fuels, a development that Paluckas previously forewarned would result in an astronomical surge of fuel prices by 2029-2030.
In an open missive on February 1st, more than twenty business entities appealed for a reexamination of Lithuania's fuel excise policy, a halt to the proposed 2026 tax increase, and coordination with Poland, Latvia, and Estonia in aligning their energy strategies.
Whilst Paluckas asserted that the current situation does not call for alarm, he did not dismiss the likelihood of revisiting fuel excise policies in 2026.
Addressing the media, he expressed his reservations about the success of a joint appeal to the Commission but underscored the importance of Brussels addressing the situation, as a sharp increase in fuel prices could render Lithuanian businesses comparatively less competitive.
The CO2 component for fossil fuels took effect from the beginning of this year, leading to a 10.1% rise in gasoline tax, a 26.7% hike in diesel price, a 41.7% escalation in marked diesel, and a roughly 22% jump in liquefied petroleum gas.
Moreover, under the so-called Defense Fund law, approved in 2022, duties on gasoline, diesel, green farm diesel, oil gas, and various energy products have risen by 6 euro cents per liter (excluding VAT) since January.
As per the businesses advocating for policy change, Lithuania now boasts the highest diesel excise duty in the region, amounting to 0.52 euros per liter. This move stems from concerns about the economic repercussions and competition stemming from these energy price hikes.
- With the escalating energy costs set to begin in 2028, the business industry in Lithuania, along with its neighboring countries, has agreed to pressure the European Commission to reconsider the adjustments to the emissions allowance system.
- In light of the potential hold on regulations enforcing a spike in fossil fuel costs, Lithuania's Prime Minister, Gintautas Paluckas, has expressed reservations about the success of a joint appeal to the Commission, emphasizing the potential impact of brisk fuel price hikes on local businesses.
- Energy price hikes, triggered by the increase in the CO2 component for polluting fuels and the Defense Fund law, have positioned Lithuania as the country with the highest diesel excise duty in the region, causing concern among businesses about the economic repercussions and competition stemming from these increases.
- Amid discussions with the Baltic prime ministers and Poland, Lithuania has appealed for a reexamination of its fuel excise policy, aiming to halt the proposed 2026 tax increase and coordinate with its neighboring countries in aligning their energy strategies.
- In an open letter, more than twenty business entities have called upon the European Commission to reconsider Lithuania's energy policies, seeking a reevaluation of the fuel excise policy and a collaborative approach to addressing the energy price hikes, particularly in the defense and finance sectors.
