Latvia is experiencing moderate fuel price increases following disruptions to shipping in the Strait of Hormuz, but officials are urging calm and dismissing fears of widespread shortages, according to statements made Wednesday.
Ieva Ligere, chair of the Latvian Fuel Traders Association, told Latvian Television’s “Rīta Panorāma” program that while fuel prices have risen in response to tensions in the Middle East, the increases have been less pronounced in Latvia than in neighboring Lithuania, and Estonia. Stock market prices for fuel in Latvia rose 16% on Monday compared to Friday, and a further 14.6% on Tuesday. As of Tuesday, the average price of a litre of diesel fuel was €1.59, up from €1.54 on Friday.
“We are gradually seeing this, but the increase is smaller than the increase in fuel exchange prices,” Ligere said, explaining that individual fuel suppliers’ stock levels and pricing strategies are contributing to the varied pace of increases. She emphasized that there is no indication of a panic-driven fuel supply issue.
The price increases follow threats from Iran that have effectively halted shipping traffic through the Strait of Hormuz, a critical waterway for global oil transport, carrying approximately one-fifth of the world’s crude oil. The disruption has already impacted oil and fuel prices on international exchanges.
Ligere cautioned against stockpiling fuel, stating, “There is no need to panic about fuel supplies in Latvia. There are no forecasts that the price of fuel could rise by 20-30 cents a day.”
The Latvian experience contrasts with more rapid price increases observed in Lithuania, where fuel prices have risen 12.7% per litre, and Estonia, with a 5.7% increase. Latvia has seen a more moderate increase of 3.2%.
Speaking to the LETA news agency, Ligere refrained from offering predictions about future price fluctuations, citing the ongoing conflict in the Middle East and the volatility of exchange rates. She noted that a stronger dollar exchange rate would exacerbate the impact of international fuel prices on the Latvian market, as fuel supplies are purchased in dollars.
Other industry representatives have echoed the cautious outlook. Jānis Vība, chairman of the board of the Virši gas station network, pointed out that approximately 20% of the world’s oil and liquefied natural gas transits the Strait of Hormuz, making any restrictions on shipping a significant factor in global oil supply and prices. Neste Latvija representatives declined to offer specific predictions, citing the influence of numerous factors on fuel prices.
