In Latvia, fuel prices are currently changing evenly and steadily, reported LETA the chairwoman of the Latvian Fuel Traders Association Ieva Ligere.
She noted that the market dynamics in Latvia differ from Estonia, where price fluctuations are currently significantly sharper, and the difference between gas stations can reach even 20 cents per liter.
"In Latvia, the movement of prices is significantly more even and stable," said Ligere.
When asked why fuel prices in Latvia have been rising recently despite the decline in Brent crude oil prices, Ligere explained that gas station prices are not directly linked to the price of crude oil, as retail prices are influenced by international exchange quotations for fuel products – gasoline and diesel.
"They often do not move in sync with oil, and sometimes product prices rise even when oil is getting cheaper. Therefore, fuel prices should be evaluated based on the exchange prices for products, not on crude oil," Ligere explained.
She added that retail fuel prices in Latvia change gradually and with a time lag, making them more stable compared to the dynamics of exchange prices. "The decrease currently observed on the exchange followed a very sharp previous increase, so it has not yet reflected on gas station prices," Ligere explained.
She also pointed out that over the month, the situation on commodity exchanges remains close to neutral – with moderate but fluctuating growth, while in recent days there has been a prevailing trend towards decline.
At the same time, the head of the association added that the final price is also influenced by the fuel grade and its cold resistance, as Arctic diesel fuel is more expensive, as well as the cost of bio-components, their share in the mix, logistics costs, and discount policies.
"During the period when bio-component prices rose sharply, the increase in retail prices in Latvia was more moderate, as this cost pressure was partially offset by the use of Arctic fuel. Arctic diesel fuel is more expensive than summer fuel but cheaper than biofuel," Ligere explained.
As previously reported, in Latvia, the average price of diesel fuel increased by 2.6% in the week from November 17 to 23, while the average price of 95 octane gasoline rose by 2.5%.
In Latvia, a liter of 95 octane gasoline cost an average of 1.579 euros, while the average price of diesel fuel was 1.561 euros per liter.
