Fuel prices in Latvia have risen sharply this week, with diesel increasing by nearly 30 percent and gasoline by over 15 percent since February 27, according to reports from the LETA news agency. Circle K Latvia stations were selling diesel for 2.014 euros per liter and octane-95 gasoline for 1.794 euros per liter as of Friday.
The price surge is directly linked to escalating tensions in the Middle East, following attacks launched by the United States and Israel on Iran on February 28. These actions have disrupted global shipping routes and triggered a significant increase in oil prices, impacting economies worldwide.
European gas and oil markets experienced substantial volatility on Thursday, with the Dutch TTF benchmark, a key indicator of European gas supply, surging over 30 percent to 70.7 euros per megawatt-hour before settling around 67 euros per megawatt-hour. This represents more than a doubling of the price from approximately 32 euros per megawatt-hour prior to the recent conflict. Brent crude oil too rose, exceeding 116 dollars per barrel in early trading.
In response to the rising fuel costs, the Latvian government has indicated it is exploring measures to stabilize prices. These potential solutions include a temporary reduction in excise duty on fuel and the implementation of a mechanism to monitor profits made by fuel retailers.
The Latvian Fuel Association has stated that, as of Friday, there are no reported issues with fuel supply within the country, according to LSM.
Latvia is also considering releasing up to 40,000 tonnes of oil reserves onto the market, according to the Baltic News Network, as a further step to mitigate the impact of rising prices.
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