Ministry of Finance proposes to temporarily reduce the excise duty on diesel fuel: the price could go down by 6 cents
The Ministry of Finance has submitted for coordination a draft Law on Excise Duty proposing a temporary reduction of the fixed part of the excise duty rate on conventional diesel fuel and marked diesel used in agriculture. The decision was initiated in response to the significant rise in crude oil and fuel prices caused by the outbreak of the military conflict in the Middle East and the resulting disruption of supply on global markets.
“We aim to respond quickly and in a targeted manner to the current market situation – a temporary reduction in the excise duty rate on diesel would help to reduce the financial burden on individuals and businesses, while maintaining a balanced impact on the State budget”, Minister of Finance Vaitiekūnas states.
Under the proposed project, the fixed part of the excise duty rate would be reduced by 15 June 2026 for both conventional diesel fuel subject to the standard excise duty rate and marked diesel used in agricultural and fisheries activities. For conventional diesel it would fall from EUR 500 to EUR 450 per 1,000 litres of product, and for agricultural diesel it would fall from EUR 60 to EUR 10.
This amendment, together with the variable components, CO2 component and security component, would make conventional diesel subject to an excise duty rate of EUR 503.60 per 1,000 litres of the product, while marked diesel used by farmers would be subject to an excise duty rate of EUR 35 per 1,000 litres of the product.
It is estimated that tax changes could reduce the final price of fuel for consumers by about EUR 0.06 per litre (including VAT).
It is envisaged to reduce excise duty rates on diesel in such a way that losses to the State budget due to reduced excise duty revenue would be compensated by increased value added tax revenue due to higher diesel prices. Therefore, the overall impact on the State budget resulting from the proposed changes would be broadly neutral.
The draft law has been published in the Legislative Information System, where it can be consulted and commented on by all interested bodies and the public. After the coordination procedures, the draft law will be submitted to the Government and the Seimas for consideration.
Last updated: 27-03-2026
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