The government approved an emergency reduction in excise duty. Now it's up to the Saeima! 0 11

So, just now the government approved, during a closed session after brief discussions, the draft law developed by the Ministry of Finance "On Limiting the Growth of Diesel Fuel Prices." The draft law provides for: first - a reduction of 15.2% in the currently applied excise tax rate on diesel fuel from 467 EUR to 396 EUR per 1000 liters. Second - it is also proposed to set the excise tax rate for marked diesel fuel used in agriculture at 21 EUR per 1000 liters, namely - 15% of the standard rate during this period.

The reduction in excise rates is a limited measure: from April 1, 2026, to June 30, 2026.

"The need to develop the draft law is due to the emergency situation in the global oil market. Since February 28, 2026, the security situation and military actions in the context of the US and Israeli operation in Iran have significantly affected shipping in the Strait of Hormuz, through which about 20% of the world's oil consumption is transported, leading to a significant global disruption in oil supplies since 1973. The exchange price of diesel fuel (ICE Low Sulphur Gasoil) has increased by more than 70%, and the price of Brent oil has risen by approximately 44%. In Latvia, the retail price of diesel fuel has increased by about 30% since the end of February. This is the highest retail price since the energy crisis of 2022.

The aim of the draft law is to limit the negative impact of the extraordinary rise in fuel prices on the national economy, households, and public sector services by timely and temporarily establishing measures to reduce fuel prices," the annotation to the draft law states.

The Saeima is expected to consider the draft law this Thursday, and it may be adopted immediately in an expedited manner, in two readings.