Fuel traders are outraged and do not rule out an appeal to the Constitutional Court.
As previously reported, today, Minister of Economy Viktor Valainis managed to push through the government the bill "On the Solidarity Payment of Fuel Traders." In the coming days, the document will be submitted to the Saeima. The essence of the bill is to fully confiscate the profits that fuel traders will generate due to an unjustified markup exceeding 3 percent. In simple terms, if it is proven that retail fuel traders have added more than 3 percent to the final price, then this excess profit will still have to be returned to the state.
The fuel traders themselves were, as expected, categorically opposed to this bill at today’s government meeting. The Association of Fuel Traders stated that the bill is an attempt to regulate prices in a market economy, which is completely unacceptable. The Latvian Confederation of Employers also expressed concerns about the risk to free competition. Representatives of fuel traders believe that such a policy by the Latvian authorities worsens the investment climate and will deter investors. If the Saeima adopts the law in its current form, the Association of Fuel Traders may appeal to the Constitutional Court.
