Fuel excise as a cartel at the EU level

Comments by Ms Rūta Vainienė in the daily Lietuvos žinios on the rocketing fuel prices and the reasons why fuel retailers are blamed for them, why they are being shaken by the Competition Board that is searching for a possible cartel agreement on prices. In her comment, LFMI President reminds of the fact that the cost of the fuel itself makes less than half the amount (45%) of the fuel price. As much as 55% of the price for end users goes not to fuel retailers, manufacturers and oil oligarchs, but to the budget of Lithuania. It is for quite some time now that Lithuania has no longer been applying the EU minimum excise duty and therefore has a reserve to reduce, at a single stroke, the fuel cost by about 26 cents. In addition, the fuel prices are further increased by the ”temporarily“ increased VAT rate that is calculated based on the fuel price, including the excise.