Lithuanian Fuel Association urges excise tax review

The Lithuanian Fuel Association has appealed to the Ministry of Finance to consider temporary reductions in diesel excise taxes and other fiscal measures to mitigate the impact of high fuel prices on citizens, businesses, and the national economy.

The Association highlighted a significant decline in diesel sales within Lithuania. According to State Tax Inspectorate data, diesel realization in the first half of 2025 reached approximately 747.5 million liters, compared to 897 million liters during the same period in 2024—a decrease of nearly 150 million liters, or 16.7 percent.

Furthermore, the Association pointed to a notable price discrepancy between Lithuania and Poland. They argued that consumers are traveling to neighboring countries to purchase fuel and other goods, which results in a loss of tax revenue for the Lithuanian budget. Vidas Šukys, the executive director of the Lithuanian Fuel Association, stated that the government must weigh the direct cost of excise reductions against the economic cost of declining domestic fuel sales and shifting consumption patterns.