On Thursday, 26 March 2026, the Saeima adopted in the final reading the Law on Limiting the Increase of Fuel Prices which provides for temporary measures aimed at mitigating the economic and social impact of rising fuel prices.

“This is a balanced decision that helps alleviate cost pressures on businesses while strengthening economic stability. At the same time, the overall level of budget revenue is maintained,” emphasises Anda Čakša, Chair of the Budget and Finance (Taxation) Committee, which is responsible for drafting the Law.

The Law establishes a temporary reduction in the excise duty on diesel fuel: from the current EUR 467 to EUR 396 per 1000 litres. For marked diesel fuel used in agriculture, the excise duty rate is set at EUR 21 per 1000 litres. The reduced rates will apply from 1 April to 30 June.

The aim of the regulation is to mitigate the negative impact of rising fuel prices on household expenses, business costs, and the overall inflation rate. Rising fuel prices significantly affect costs in transportation, logistics, and other sectors, leading to further price increases for goods and services.

The adoption of the Law is linked to a significant rise in fuel prices on international markets, caused by geopolitical events and disruptions in oil supply chains. In recent weeks, a sharp rise in oil and diesel prices has been observed, which has also had a direct impact on the market in Latvia, given the high proportion of imports in fuel supply.

In light of these developments, the Cabinet of Ministers has developed a temporary solution that allows for a swift response to price fluctuations while maintaining balance in the State budget. The reduction in the excise tax will partially offset the price increase and help stabilise the economic environment.

Saeima Press Service