"Diesel consumption is falling, we can see that, but this was anticipated. The proportionate, gradual increase in excise duties on diesel was intended to reduce diesel consumption," Rimantas Šadžius told reporters before the Cabinet’s sitting Wednesday.
"Our forecasts have so far been fully correct, with excise duty collections in the first two months of this year up around 20% compared to the first two months of 2024. The defence fund is filling up accordingly, and the dynamics of fuel sales is not worrying either," the minister said.
In addition, he said, fuel prices in Lithuania have remained competitive in the European context, and the increase in the price of diesel has not had negative consequences for the national economy.
New excise duties on alcohol, tobacco products and fuel came into force in Lithuania on 1 January.
One litre of petrol went up by around EUR 0.06 in price and one litre of diesel by around EUR 0.13.
The price of half a litre of beer rose by EUR 0.05. A 0.5 litre of spirits was set to cost by EUR 0.69 more.
The Ministry of Finance’s estimate said a pack of 20 cigarettes would cost EUR 0.26 more, while consumers would need to pay EUR 0.24 more for the same amount of heated tobacco products and alternative products to them.
Last year, the Seimas passed legislation to establish the State Defence Fund, which involves a tax raise in order to ensure 3% of GDP defence funding. The Parliament raised the corporate income tax by 1 percentage point, increased excise duties on alcohol and tobacco, and raised a CO2 component in excise duties on all fuels. Previously, parliament extended the temporary bank solidarity contribution for one more year.
The measures were estimated to generate EUR 295 million funding for defence in 2025, EUR 425 million in 2026 and EUR 444 million in 2027.