Energy, Lithuania, Transport

International Internet Magazine. Baltic States news & analytics Saturday, 04.07.2020, 14:32

Lithuanian fuel prices stabilize after volatile start in 2020

BC, Vilnius, 24.01.2020.Print version
Fuel prices in Lithuania have somewhat stabilized lately after a surge at the start of the year driven by excise tax hikes and rising crude prices, reported LETA/BNS.

"Diesel fuel prices now fluctuate a few cents up or down, but they are basically stable now. Gasoline prices are at about the same level," Daiva Joksiene, the president of the Association of Lithuanian Oil Product Trade Enterprises told.  

According to Orlen Lietuva, the sole crude refinery in the Baltics, the wholesale diesel fuel price was down by two euro cents on January 23 compared with late December to 1.02 euros per liter, but the average price of A95 gasoline was up by some three cents to 1.12 euros.  


According to Joksiene, the apparent reason why the wholesale prices moved in opposite directions was that demand for diesel fuel was lower than that for gasoline. 


Prices at the pump have been on an upward trend since the start of the year, the association's president noted. 


"Retail prices are on the rise, due largely to December's increase in wholesale prices. That was followed by the excise duty hike, and, again, (retail prices) increased gradually, because not all companies raised their prices at the same time," she said. 


Arunas Vizickas, the founder of the Pricer.lt price comparison site, noted that fuel retailers had raised their prices at different rates following the excise duty hike and the rise in crude prices at the start of the year.  


According to Pricer.lt, A95 gasoline prices ranged from 1.17 euros per liter at Jozita filling stations to 1.29 euros at Circle K stations on January 14. 


Diesel fuel prices ranged between 1.09 euros at Jozita and 1.24 euros at Circle K.  

Vizickas expects crude oil prices to be the key factor driving prices at the pump in the near future, because the excise duty hikes have already been factored into retail prices.  


Brent crude dropped by about 4 US dollars this week and hovers near 62 dollars a barrel at the end of the week.  


The price fell as there was no further escalation of the US-Iran conflict. Analysts say the market may be affected by the deadly coronavirus outbreak in China which may cause people to travel less and bring down demand for fuel.






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