Former Prime Minister of Latvia Aigars Kalvitis stated that ill-considered decisions in regulating the fuel market could lead to serious consequences, including fuel shortages in the country. He discussed this on the program "Nedēļa. Post scriptum" on TV24.
Criticism of Possible Solutions
According to Kalvitis, the situation becomes critical when market participants face constantly changing rules. He emphasized that under such conditions, companies may refuse to import fuel, leading to a shortage.
"We may come to a situation where there will simply be no fuel," he noted, commenting on the measures being discussed regarding fuel companies.
Kalvitis expressed skepticism about initiatives aimed at putting additional pressure on fuel traders, including the possible introduction of a so-called "solidarity payment." In his opinion, such steps may seem attractive, but in practice will only exacerbate the situation.
He emphasized that the market cannot function if the rules of the game change too often and depend on political decisions.
Alternative from Kalvitis
As a more rational approach, the former prime minister proposed temporarily reducing the excise tax on fuel. He noted that rising prices automatically increase VAT revenues, and part of this money could be used to offset the tax burden.
According to him, such a measure would not harm the state budget and would help stabilize the situation.
Kalvitis also pointed out that current attempts to lower prices, for example on diesel fuel, are not yielding significant results. Meanwhile, high prices continue to put pressure on drivers and the agricultural sector.
He added that in the context of rising costs, farmers may need additional support to ensure the conduct of the sowing campaign.
In conclusion, Kalvitis urged the authorities to abandon populist measures and focus on effective regulatory tools. In his opinion, thoughtless measures could lead to suppliers simply stopping fuel deliveries, which would be a serious blow to the country's economy.
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