bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 23.01.2018 | Name days: Strauta, Grieta
LatviaLatvia

Economist: fuel prices to exceed lat in mid-2011

FaceBook
Twitter
Draugiem
print
(+1 rating, 1 votes)

Baltic news, News from Latvia, BNN-NEWS.COM, BNN-NEWS.RU

Fuel prices in Latvia could hover around 95 santims in the middle of the year, but in case of any disruptions in oil extraction, fuel costs could exceed one lat, according to AS SEB banka macroeconomic expert Dainis Gašpuitis (Gaspuitis).

The expert explains excise tax on fuel will be increased on June 1, but in terms of price fluctuations the effects will be felt after about three months, due to introducing fuel crisis reserves.

In this case, in mid-2011 when the tax and reserve effects will come into force, fuel price will climb for about five santims. Moreover, it could already fluctuate around 95 santims. However, if the chaos keeps escalating and disruptions in oil production take place, any future prospects will be unpredictable. Considering the tax and reserve impact, fuel prices might soar, even exceeding one lat, Gaspuitis says.

Fuel price forecasts coincide with the assessment of political processes in North Africa and Middle East, as well as its potential shift to other authoritarian states.

The rapid oil price gains prompt talks on how much more the global economy can withstand.

It is possible that due to their continuous rise, the consumption and growth is undermined, resulting in price drop to lower levels, the expert indicates.

However, he acknowledges that in any case fuel will become more expensive, yet the extent of the surge will be determined by many unpredictable factors.

The only way to reduce this impact is to improve the efficiency of oil resource consumption. Most likely, more active government involvement is necessary to promote this issue and find solutions, believes the analyst.

In the longer term, gas consumption and usability will grow, because problems with this resource availability are not expected in near future.

The already spiking fuel prices reflect the tax rise, political instability in North Africa and the Middle East, as well as speculations. Consequently, the price of fuel is coming close to 90 santims.

The political crisis in the region is only starting to escalate, and it is still difficult to determine its possible spread to other regions or countries; besides, particular concerns arise from the likelihood of unrests in major oil-exporting countries, such as Saudi Arabia, United Arab Emirates and Iran, the expert emphasizes.

So far, Saudi Arabia could compensate the oil shortage due to the riots in Libya, but the available capacity is limited and no one can guarantee that the unrest does not excel there as well.

If these revolutions can ensure a reasonable power changeover process, which does not cause significant oil production disruptions, it is possible to expect that oil prices will stabilize.

Western countries will put a lot of effort for that to happen, because it undermines their economic growth; however, it is rather unpredictable, therefore any substantial price reductions cannot be expected in the short term, the expert underlines.

Internal battles over oil extraction revenues are yet to come and there is little hope that this country will manage to revive the principles of democracy. Therefore, fuel prices in Latvia will continue to soar, concludes Gaspuitis.

As reported, the price of 95-octane fuel at Latvija Statoil refuelling stations rose by 1.5 santims – from 87.9 santims to 89.4 santims per litre over the week.

While the price of diesel at Latvija Statoil stations increased by one santim – from 88.9 santims  to 89.9 santims a litre.


Leave a reply

  1. Ricky says:

    Grade A stuff. I’m unqusteionably in your debt.

    Thumb up 0 Thumb down 0

Latvia shares experience in civil rights reforms with Uzbekistan

Uzbekistan is one of Latvia’s priority countries for development of cooperation. Considering Uzbekistan’s launched reforms for state administration, Latvia is ready to continue offering support and sharing experience, says Foreign Ministry’s special assignment ambassador Igors Apokins.

Estonian state rail cargo company worked with million-euro losses in 2017

Estonian state-owned rail cargo carrier EVR Cargo concluded the year 2017 with net losses of 1.2 million euros, but managed to earn a million euros in from October to December 2017.

Alcohol industry to adopt social responsibility symbols on labels

More than 60% of all labels of wine and other strong alcoholic beverages purchasable in Latvia will be added with a special social responsibility symbols, reminding residents of responsible consumption of alcohol, BNN was informed by Latvian Alcohol Industry Association (LAIA).

ManaBalss.lv initiative «On saving Agenskalns market» submitted to Riga City Council

An initiative started by Anda Baidekalna «On saving Agenskalns market» has been submitted to Riga City Council for review. More than 2,000 people signed in favour of this initiative on ManaBalss.lv portal. Now Riga City Council will have to decide on approval of this initiative and develop a plan for development of Agenskalns market to preserve its functionality.

Estonian construction price rise influenced most by higher labour costs

Estonian construction price index grew by 1.5% in 2017 aligned with the average of 2016, Estonian statisticians calculated.

Latvian Economy Ministry proposes self-regulatory measures for postal sector

The problem with postal items lacking addresses can be resolved using self-regulatory measures in the postal industry, as mentioned in Economy Ministry’s prepared report on new measures and proposal for mechanisms to help make the work performed by the postal sector more efficient.

Venice tourists stunned over 1 100-euro restaurant bill

The leadership of the picturesque Italian town of Venice has pledged to ensure justice after four Japanese tourists complained of having been handed a 1,100-euro bill for steaks, water, service and a plate of fried fish.

Ratification of Istanbul Convention falls through in Latvia

Unity is the only one of the coalition parties in Latvia that has expressed support for the ratification of Istanbul Convention so far, politicians say.

Spain sees Puigdemont's trip to Denmark as provoking his own arrest

A judge of the Spanish Supreme Court has blamed Catalonia's former President Carles Puigdemont of seeking to provoke his own arrest by visiting Denmark from his country of exile, Belgium, as the politician faces charges carrying a possible prison sentence of up to 30 years.

Latvenergo: Latvia is the largest energy exporter in Baltic States

Latvia continues exporting electrical energy produced in the country – as of Monday, 22 January, it was 832 MW. Especially intensive energy production is recorded for Daugava’s hydro-electric power plants and Riga’s CHP plants. The largest import volume is registered for Lithuania, to which the amount of exported energy equals the amount consumed in Latvia, Latvenergo explains.

LALRG secretary general: we have to reduce gap in quality of life for EU citizens

Ever since Latvia joined the European Union, its population has declined 14%. The most significant decline was caused by the departure of residents of working age to other EU member states. Because of that, the population in eastern regions of Latvia has declined 23%.

Czechs up for close race in this week's presidential run-off

As the Czech Republic nears the second round of its presidential election this weekend, sociologists estimate that the pro-Western academic Jiří Drahoš enjoys a somewhat larger support than the incumbent Miloš Zeman, who easily won the first round.

Producer price level in Latvia’s industry up 3.1%

Compared to December 2016, the level of producer prices in Latvian industry rose by 3.1 % in December 2017. Prices of products sold on the domestic market rose by 3.0 %, while prices of exported products went up by 3.3 %. Prices of products exported to euro area countries grew by 3.8 %, whereas prices of products exported to non-euro area countries rose by 2.9 %.

MEP: an even greater UGF dominance would slow down Latvia’s development

If the Union of Greens and Farmers (UGF) gains an even greater presence in the upcoming Saeima elections, Latvia’s continued development would suffer, said member of the European Parliament Artis Pabriks in an interview to 900 seconds programme of LNT.

Tax reform challenge in January: labour tax recalculation

2018 commenced for Latvia with a historical tax reform and conceptual changes, significantly affecting everyday work performed by businessmen, employers and accountants. One of the changes financial specialists have to remember when calculating wages for January is the one for personal income tax, which also includes changes for state social insurance fees and solidarity tax, BNN was told by accounting experts.

Total tax debts in Latvia reach 1.217 billion euros at beginning of 2018

At the beginning of the year, total tax debts in Latvia, including existing debts, halted debts and debts with extended repayment debts, reached EUR 1.217 billion, which is 3% less when compared with the previous month, as reported by the State Revenue Service.

Estonia emphasises animal welfare as demand for animal food products grows

Although the demand for food products from animals is increasing, attention should be paid both animal welfare and sustainability in agriculture, Estonia's Minister for Rural Affairs Tarmo Tamm has stated.

Latvia hopes to recover its status as a country free of swine fever

There is hope that Latvia may yet recover its status of a country free of swine fever, says Food and Veterinary Service’s (FVS) Animal Infections Monitoring Department lead expert Mārtiņš Seržants.

Estonia prepares to inform population of actions in case of emergency or war

Estonia is preparing a brochure on how its population should act in case of major crisis or war.

De Facto: international lawsuit against Latvia is associated with infamous Winergy case

Norvik Bank’s lawsuit against Latvian state in the international court of arbitration in Washington is associated with Winergy wind park business, as reported by De Facto programme of LTV. The bank has yet to announce the amount of money it wishes to enforce from the state

German Social Democrats vote to U-turn on coalition talks with Merkel's conservatives

In Germany, where four months after its federal parliamentary elections there is still no government, the Social Democrats have voted to enter coalition talks with the conservatives led by German Chancellor Angela Merkel.

Weather in Latvia to become warmer this week; thaw to settle in

Weather in Latvia will be dictated by an anticyclone at the beginning of the week. Precipitation is only expected in some areas, mostly in the north. The sky will be cloudy for the most part. Still some sun is expected every now and then, as reported by State Environment, Geology and Meteorology Centre.

Turkey crosses into Syria to attack Kurdish militia

Turkey's ground forces have entered the territory of neighbouring Syria strengthening Ankara's offensive to push Kurdish militia, considered to be terrorists by Turkey, away from the border.

Week in Lithuania. Fake news on Lithuanian Defence Minister planted on news portal

The Tv3. lt news website was hacked on Thursday, January 18 - a fake news story about Lithuanian Defence Minister Raimundas Karoblis was posted claiming that Karoblis allegedly harassed Ridas Jasiulionis, a journalist at the Žinių Radijas radio station, and admitted being gay.

BNN summary of the week: final report on Oligarchs case and ordered attacks on e-health

BNN offers a summary of this week’s topical news in a variety of categories: Change; Fight; Attack; Growth; Decline; Opinion; and Study.

Would you be ready to boycott something in your life?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: