Lithuania is considering imposing a windfall tax on Orlen Lietuva, the Baltic states’ only oil refiner, following an investigation into its pricing practices, Finance Minister Kristupas Vaitiekūnas said Tuesday.
The proposed levy would be modelled on the temporary “solidarity contribution” previously applied to the banking sector. Vaitiekūnas said similar measures targeting wholesale fuel companies are being discussed across Europe, particularly amid elevated global oil prices.
“We are examining whether the wholesaler is generating additional income that it would not otherwise receive if international oil – especially diesel – prices were not so high,” he told LRT RADIO.
“Discussions are active across Europe regarding a tax similar to the bank solidarity levy. We are participating in these talks and evaluating the proposed models,” he added.
The minister said Lithuania would follow other countries if it determines that excess profits are being generated domestically.
The comments come after authorities were tasked last week with reviewing how Orlen Lietuva sets wholesale fuel prices, following a spike linked to tensions in the Middle East.
Vytenis Gudelis of the Lithuanian Energy Agency said profit margins for oil wholesalers, including Orlen Lietuva, have increased since the outbreak of war in the region.
According to Gudelis, fuel producers are currently earning more from diesel than petrol, contributing to what he described as a “somewhat disproportionate” rise in diesel prices at filling stations.
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