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Saturday 18.11.2017 | Name days: Doloresa, Aleksandrs
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Expert: fuel not to cost one lat per litre in 2011

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

Ojars Karcevskis

This year the fuel price will not amount to 1 lat per litre, the next level could be 90 santims, like it is now in the neighbouring countries. Yet, if we look at Europe, only Bulgaria has even lower fuel price; moreover, in mid-December the lowest price was recorded in Latvia, indicates the Latvian Fuel Traders Association Head Ojārs Karčevskis (Karcevskis).

I hope global prices will not rise, as most analysts forecast; so there will be no grounds for concerns about fuel price surge, Karcevskis points out to LTV broadcast Labrīt, Latvija!.

At the same time, he also underlines that the fuel price rise starting from January 1, this year, is linked to the tax increase. The fuel market yearly ensures additional 40 million lats in the budget, which is a significant amount. However, traders have included part of the tax increase in their expenditure, so the price climb is smaller than the taxes provide.

When asked whether Latvia should not do as other countries – including tax for road usage in the fuel price, Karcevskis indicates the mechanism must be combined. Part of the fuel is not purchased in Latvia’s legal fuel network, but is transported through the border. It appears that we procure fuel elsewhere, paying other country’s taxes, but do not pay for road usage in Latvia, the expert points out.

The proportion of fuel contraband is huge. Even 1% of the contraband forms four million lats per year that do not go to the state budget. This is a big money to fight for. Organized groupings run the contraband, creating a network with their equipment and attracting customers by advertising on the Internet. The price of their offered fuel is by 15 – 17 santims cheaper, and people buy it, Karcevskis emphasizes.

Our figures are based on both the State Revenue Service data and the Road Traffic Safety Directorate data on the carried out inspections. There is a difference between kilometrage and the fuel consumption – it is higher than the volume of procured fuel. Even 1%, 2% or 5% is a considerable number, Karcevskis asserts.

He also adds that fuel consumption still continues to drop in Latvia – over the nine months of 2010 the drop comprised 2%. The current weather conditions, the snowfall, will even more decrease the consumption.


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  1. Gunnar says:

    Illegal fuel contraband is really an issue that needs some resolution otherwise considerable money sums are lost.

    Thumb up 0 Thumb down 0

  2. Melvina says:

    Frknaly I think that’s absolutely good stuff.

    Thumb up 0 Thumb down 0

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