Diesel fuel will last for 64 days out of 90 — revealed what the state reserves of Latvia really are 0 6

According to the requirements of the European Union, Latvia must maintain stocks of petroleum products to ensure the operation of the country's economy for at least 90 days without imports. How large the state reserves are, where they are stored, and how feasible it is to release them to the market is explained by TV3 News.

Economy Minister Viktor Valainis previously stated that the Latvian government would be ready to release even 40,000 tons of oil to the market. However, the situation is complicated by the fact that oil prices change not daily, but hourly.

Latvia has strategic reserves of petroleum products, which include several types of fuel — primarily diesel fuel, but also gasoline, aviation fuel, and heavy fuel oil. These reserves are formed in accordance with the requirements of the European Union, so that in the event of a crisis, Latvia can ensure fuel for at least three months without imports. Most of the reserves are stored in terminals in Latvia, while some are held by private storers under special agreements.

"In total, we have an oil reserve of 380,000 tons, which is distributed across various products. Of course, the most interest is in fuel — diesel. In fact, there is enough diesel fuel for 64 days out of 90. I can reassure everyone — all diesel fuel is stored in Latvia, most of it is owned by the state, and a small part is under 'availability agreements' with private storers," said Raivis Bremšmits, State Secretary of the Ministry of Economics.

Where exactly most of the state diesel fuel is stored is not disclosed for security reasons. Furthermore, in practice, the fuel reserves have never been used or released to the market. If such a need arises, fuel will still be supplied to buyers through the existing infrastructure of merchants.

"Through market participants — that is the answer. This question needs to be carefully weighed: when and how much to offer. But from a practical point of view, these will be gas stations. Fuel will be distributed proportionally among market participants: those with a larger network will be offered more," explained Bremšmits.

It is still unclear whether it will be necessary to release state fuel reserves to the market.

The State Secretary of the Ministry of Economics says: "The situation is developing daily, hourly; the government will make the decision on this. How much or whether to release at all. (TV3: Next week? Is this question on the agenda?) In the near future. (TV3: Next week?) In the near future."

The Economy Minister emphasized that the use of Latvia's reserves should be approached cautiously. According to him, the situation in the oil market has been very unstable in recent weeks, so it is important for the government to preserve as much of the physical reserves as possible. The State Secretary of the ministry reassures that the reserves will be maintained even in the event of an even more rapid rise in prices.