Lithuanian President Gitanas Nausėda has proposed introducing fuel price caps to curb rising costs driven by conflict in the Middle East, his office said.
The president submitted draft legislation to parliament establishing a mechanism for setting maximum consumer fuel prices, along with amendments to the Law on Energy. Under the proposal, the energy minister would calculate and publish daily maximum fuel prices for the following day.
The system could be activated by government decree in response to changes in fuel taxes or significant price fluctuations.
“The proposed mechanism serves two important goals. First, to have a tool to ensure that financial benefits reach the end consumer when indirect fuel taxes are reduced. Second, to have a maximum fuel price mechanism compatible with a market economy,” Nausėda said.
He noted that a similar system has long been in place in Belgium and said the measure would complement other government proposals.
Under the plan, maximum fuel prices would be calculated using a formula based on oil prices, average margins covering refining, biofuels, logistics and trade costs, as well as excise duties and value-added tax.
Retailers violating the rules could face warnings, fines of up to 50,000 euros, or the suspension or revocation of operating permits.
Nausėda first raised the idea of daily fuel price caps in March, saying he had instructed his team to examine the Belgian model, where price ceilings are set daily based on objective criteria such as crude oil prices.
Energy Minister Žygimantas Vaičiūnas previously said the possibility of daily price caps could be considered if tensions in the Middle East and volatility in raw material markets persist, adding that Nausėda’s initiative is more far-reaching than other planned measures.
The cabinet on Friday approved a proposal by the Finance Ministry to temporarily reduce excise duties on diesel in an effort to manage prices. A final decision now rests with the Seimas, which will be asked to consider the matter under an urgent procedure.
Meanwhile, the Energy Ministry has proposed new rules allowing petrol stations to raise prices only once per day, in a bid to boost market competition.
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