Cabinet approves electricity and gas price subsidies for households

The Lithuanian government approved on Monday electricity and natural gas subsidies for household consumers in the second half of this year, and set a minimum tariff below which electricity prices will not be subsidized by the state.

The approved scheme, in place from July through December, provides for covering up to 9 euro cents per kilowatt-hour (kWh) for electricity and up to 54 cents per cubic meter of gas.

The minimum standard electricity tariff below which the cost of electricity will not be subsidized is set at 24 cents per kWh.

This means that electricity prices for household consumers will increase by 40 percent compared to the current tariff.

Subsidized gas prices for customers of the state-controlled gas supplier Ignitis will rise by 28.8–43.4 percent, depending on the consumer group.

The government has said earlier that electricity and gas prices for households should not increase by more than 40-50 percent as of July.