Government to decide on fuel price cut of up to 20 cents per litre

Latvian Prime Minister Andris Kulbergs announced on social media that the government plans to decide this week on a package of measures aimed at lowering fuel prices to the maximum extent possible, using all tools available to the government.

Three main measures

The prime minister outlined three possible steps. First, a reduction in excise tax on fuel is being considered, which could save around 8 cents per litre. Second, officials are looking at scrapping the fee tied to fuel reserve requirements, saving an estimated further 8 cents per litre. Third, the government plans to lift the requirement to add biocomponents to fuel, which would save around another 4 cents per litre.

Taken together, Kulbergs estimates the combined effect of these measures could bring the total fuel price reduction up to 20 cents per litre.

Next steps

According to the prime minister, decisions adopted by the Cabinet of Ministers on Wednesday, September 23, will be submitted to the Saeima's Budget and Finance Committee for further progress through parliament. If approved, the fuel price reduction would be in effect from October 1 through December 31 of this year.

Warning over the Middle East situation

Kulbergs also pointed to a broader context, warning that if the situation in the Middle East does not improve, the European Union could face an issue that goes beyond fuel prices alone. According to him, this could develop into a general problem of fuel availability.