StatoilHydro fights Lithuanian alcohol ban -report

OSLO, June 24 (Reuters) - Norwegian oil and gas group StatoilHydro is trying to reverse a ban on the sale of alcohol at petrol stations in Lithuania, claiming it may lead to massive lay-offs, daily Dagens Naeringsliv said on Wednesday.

The ban on selling alcohol at night came into effect on Jan. 1, after which the number of accidents linked to alcohol have dropped by 45 percent in January-May compared with the same period last year, the paper said, quoting police data.

StatoilHydro, which is 67-percent owned by the Norwegian state, said in a letter to the Lithuanian government that the ban had led to a significant drop in revenue, which could lead to automated stations and 'massive lay-offs' in the sector.

It said not all its competitors were following the rules.

The company urged the government to reconsider the ban, saying the ability to sell alcohol 'without restrictions' played a part in StatoilHydro's decision to invest in Lithuania.

Lithuania is struggling to tackle high alcohol consumption, which jumped to 14.3 litres of pure alcohol per person in 2007 from 6.2 litres in 1998. It also has the highest proportion of road deaths in Europe at 223 a year per million inhabitants, five times as many as in Norway, the paper said.

StatoilHydro said its revenues from alcohol sales fell 43 percent in January, while the total retail sales at its filling stations dropped 23 percent.

'We have made the authorities in Lithuania aware that the new rules are not followed by everybody in the market,' Joern Madsen, head of Country Operations at Energy & Retail Europe, told the paper, adding that fair competition was its main goal.

'The consequence may be that we will close the gas stations at night,' he said, adding that the company was prepared to help implement other measures to lower the number of road deaths in Lithuania, such as stricter punishment for driving under the influence.

Alcohol laws in Norway, StatoilHydro's home market, are among the strictest in Europe. Petrol stations are not allowed to sell alcohol at all, and wine and spirits can only be sold at government-owned retail monopoly Vinmonopolet.

Beverages with lower alcohol content can be sold by other retailers, but not after 8 p.m. in most areas during the week, and 6 p.m. at weekends.

(Reporting by Aasa Christine Stoltz, editing by Will Waterman) Keywords: STATOILHYDRO LITHUANIA/ ([e-mail]; [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.