Latvian politicians have decided to intervene in the economy. Authorities intend to demand explanations from fuel traders regarding the sharp rise in prices.
As Prime Minister Evika Silina stated to journalists, the government is ready to act if oil prices rise very rapidly. Currently, it is evident that prices are not rising very swiftly.
The Prime Minister noted that Minister of Economics Viktors Valainis and Minister of Climate and Energy Kaspars Melnis have already met with representatives of the oil industry and are ready to discuss what can be done to prevent the situation from escalating into a crisis.
Valainis claims that what is happening now in retail at gas stations is absolutely unacceptable, and this week it is planned to summon fuel traders to explain "how it happened that fuel prices are rising so rapidly now."
He reminded that fuel traders will have to explain such a sharp price increase. At the same time, possible solutions will be discussed to mitigate the impact of rising prices on the economy.
"Price ceilings are one of the tools, but their impact would amount to several tens of millions of euros. Various tax instruments are also possible," Valainis said, adding that a final decision has not yet been found.
Andris Šuvajevs, the leader of the Progressive party faction in the Saeima, also suggested that it might be worth meeting with representatives of commercial banks, as reports of potential interest rate increases are emerging.
As already reported by bb.lv, the average price of diesel fuel at the largest gas station networks in Latvia has increased by about 20% since the escalation of the conflict in the Middle East, while the price of 95 octane gasoline has risen by 5–7%.
If the current geopolitical situation persists, companies predict further increases in fuel prices in the coming weeks.
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