Fuel prices in Latvia may soon exceed 2 euros per litre
A sharp rise in global diesel and petrol prices is expected to soon reach Latvian filling stations, where prices could cross the psychological 2-euro threshold. Global food prices are climbing in parallel, given their close link to oil markets.
Global fuel markets are setting historic records that are expected to soon be felt at Latvian filling stations. The benchmark diesel quotation rose by roughly 15 cents per litre over the past week, while diesel refining margins in Europe hit a new historic high. The price of the biofuel additive used in diesel also climbed about 18% over the past month. A similar trend is visible in petrol markets, where the relevant benchmark hit a 2026 record, pushing up petrol import costs in Latvia by more than 35 cents per litre since early August.
Pump prices could top 2 euros
Analysts note this global price surge will soon reach filling stations, with prices potentially crossing the psychological threshold of 2 euros per litre — otherwise fuel retailers would be forced to operate at a loss.
Food prices rising too
According to the UN Food and Agriculture Organization, world food prices have reached their highest level since 2022, with the sharpest increases in grains, sugar and dairy products. This is linked to the close correlation between food markets and biofuel and diesel markets.
Demand yet to peak
Between October and November, several factors are set to converge and push diesel demand higher: harvesting and sowing activity in agriculture across both hemispheres, the start of the heating season in the Northern Hemisphere, and planned refinery shutdowns for maintenance and the switch to winter fuel specifications. At the same time, volumes of refined oil products from Russia and the Middle East reaching the market have fallen, making it harder to meet this seasonal demand.
Alongside rising raw material costs, crude oil shipping rates have also surged — freight rates for very large crude carriers hit a record high last week, a trend compounded by recent incidents in the Strait of Hormuz. Since Latvia is fully dependent on fuel imports and partly dependent on food imports, these global market shifts are expected to affect both drivers and grocery shoppers.
