On Thursday, 18 June, the Saeima adopted as a matter of urgency, in the final reading, amendments to the Law on Limiting the Increase of Fuel Prices, extending the application of the reduced excise duty rate on diesel fuel until 31 December of this year.

The previously adopted regulation, introduced to mitigate the impact of rising fuel prices, provided for the reduced excise duty rate to be applied from 1 April to 30 June. Taking into account the tense situation in the fuel market and its impact on both residents and businesses, the Saeima has extended this period until the end of the year.

“Although fuel prices have recently declined slightly, they remain high and continue to significantly affect both households and businesses. By extending the excise duty reduction, we are curbing overall price increases, helping to maintain the competitiveness of Latvian businesses, and promoting greater stability in the development of the national economy,” previously noted Aiva Vīksna, Chair of the Budget and Finance (Taxation) Committee responsible for advancing the draft law in the Saeima.

The law establishes a temporary reduction of the excise duty on diesel fuel—from the previous EUR 467 to EUR 396 per 1000 litres. The excise duty rate for marked diesel fuel used in agriculture is set at EUR 21 per 1000 litres.

The adopted amendments are a response to a significant increase in fuel prices on international markets, driven by geopolitical developments and disruptions in oil supply chains. The aim of the amendments is to maintain the reduced excise duty rates established by law in order to limit further increases in fuel prices and prevent the pass-through of rising costs to the prices of goods and services.

Saeima Press Service