The portal bb.lv reported on the inevitable rise in prices at Latvian gas stations. A couple of days later, fuel traders themselves began to quietly talk about the increase in the cost of gasoline and diesel.
The conflict in the Middle East is likely to gradually contribute to rising fuel prices in Latvia, predict fuel traders in a comment to the LETA agency.
Ieva Ligere, the executive director of the Latvian Association of Fuel Traders, noted that the tension in the Middle East and disruptions in shipping through the Strait of Hormuz have triggered an immediate reaction on global exchanges, causing a sharp rise in oil prices.
Regarding the situation in Latvia, she stated that fuel prices directly depend on exchange prices for petroleum products and the euro to US dollar exchange rate.
According to her, the current 10% spike on the exchange creates inevitable pressure for retail price increases in Latvia. However, changes at gas stations occur gradually, taking into account the existing stock levels of sellers and competitive conditions.
Ligere refrained from predicting the scale of fuel price increases, as this will depend on the further dynamics of exchange prices, the duration of their maintenance at the current level, and whether safe tanker movement will be fully restored.
Representatives of Neste Latvija also avoided a clear answer. They only vaguely stated that many factors influence fuel prices. Therefore, the company believes that further price developments are difficult to predict.
The chairman of the board of the gas station network Virši, Jānis Vība, noted the obvious: about 20% of the world's consumed oil and liquefied natural gas is transported through the Strait of Hormuz, so any restrictions on shipping in this strait have an immediate negative effect on oil supply in global markets and, consequently, lead to rising prices for petroleum products in Latvia.
He stated that exchange prices for petroleum products have risen by approximately 20% compared to the previous week. If this price level persists, a gradual increase can likely be observed at gas stations in Latvia as well. The speed of price increases for the end consumer depends on the logistical processes of the specific seller and the volumes of fuel stocks at oil depots.
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