On Wednesday, after the temporary reduction of the excise tax came into effect, the price of diesel fuel at "Neste Latvija" gas stations increased by seven cents per liter compared to the previous day, while at "Circle K Latvia" gas stations it decreased by two cents per liter.
On Tuesday, March 31, the average price of diesel fuel in the "Circle K" network was €2.064 per liter, while on Wednesday the price decreased by 1% or two cents to €2.044 per liter.
At the same time, the average price of diesel fuel at "Neste" gas stations increased by 3.4% or seven cents - from €2.047 per liter to €2.117 per liter.
On Wednesday, prices for 95-octane gasoline also rose. In particular, "Circle K" raised the price of gasoline from €1.764 per liter to €1.864 per liter, and "Neste Latvija" from €1.747 per liter to €1.797 per liter.
As previously reported, starting today, a law limiting the rise in fuel prices comes into effect, providing temporary measures to mitigate the impact of rising fuel prices on the economy and the population.
The amendments were passed in the Saeima last week in one day, with only five minutes allocated for submitting proposals, which caused outrage among the opposition. Before the second reading, a meeting of the budget and finance (tax) commission took place, where the proposals were discussed.
Despite criticism from the opposition, the changes in the second and final reading were supported by all 94 deputies present at the Saeima meeting.
The law provides for a temporary reduction of the excise tax on diesel fuel - from the previous €467 to €396 per 1000 liters. The excise tax rate on marked diesel fuel used in agriculture is set at €21 per 1000 liters. The reduced rates will apply from April 1 to June 30.
The aim of the adopted regulation is to reduce the negative impact of rising fuel prices on household expenses, business costs, and the overall inflation rate. The increase in fuel prices significantly raises costs in transportation, logistics, and other sectors, causing a chain reaction of price increases for goods and services.
The adoption of the bill is related to a significant rise in fuel prices in international markets, driven by geopolitical events and disruptions in oil supply chains. In recent weeks, there has been a sharp increase in oil and diesel prices, which is directly reflected in the Latvian market, given the high share of imports in fuel supply.
Considering the development of the situation, the Cabinet of Ministers has developed a temporary solution that allows for a prompt response to price fluctuations while maintaining the balance of the state budget. The reduction of the excise tax partially offsets the price increase and helps stabilize the economic environment.
