The President of Latvia, Edgars Rinkēvičs, signed amendments to the Law on Limiting the Rise in Prices of Oil Products, which provide for a reduction in the excise tax on diesel fuel and gasoline. The document comes into force on October 1. According to the amendments, the excise tax rate on diesel fuel will be reduced by 16.7% — to the minimum level allowed by European Union legislation. The excise tax will decrease from 396 to 330 euros per 1000 liters. At the same time, for the first time, the excise tax on unleaded gasoline will also be reduced. The rate will decrease by 11.7% — to 490 euros per 1000 liters. For motorists, this means a reduction in the tax burden on fuel. However, this does not guarantee that prices at gas stations will decrease by the same amount, as the final cost is also influenced by global oil prices, wholesale fuel costs, logistics, and other factors. The decision was made against the backdrop of continuing fuel price increases in Latvia. On Tuesday, the price of diesel fuel at the largest gas stations in the country reached a new historical maximum. For example, at the Circle K gas station on Krasta Street in Riga, a liter of diesel fuel cost 2.234 euros, while 95-octane gasoline was priced at 2.074 euros. The previous price record for diesel at this station was set in April of this year at 2.144 euros per liter. Meanwhile, the historical maximum price for 95-octane gasoline was recorded back in June 2022 — 2.134 euros per liter. The reduction in excise tax has become one of the measures through which the authorities hope to limit further increases in fuel costs. How quickly the changes will reflect on gas station prices will become clear after the law comes into force.
