If Latvia imposes diesel fuel embargo on Belarus, it will have a negative impact on the fuel market since competition will drop significantly. Last year, Latvia imported 33% of diesel fuel exactly from Belarus. The country is the second largest diesel fuel supplier to Latvia – right after Lithuania, reports the newspaper Dienas Bizness.

“It is all about finding an alternative. Belarus supplies huge amounts of diesel fuel. We are unlikely to compensate for that. Norway? Unfortunately, there is a risk that search for alternatives will boost fuel prices even more,” says Valdis Trezins, President of the Latvian Association of International Road Transport.

“Many fuel retailers have entered into contracts on diesel imports from Belarus. If an embargo is imposed on Belarus, retailers will be forced to buy fuel elsewhere and revise their logistics,” says Andris Prieditis, board member of the largest Latvian fuel retailer SIA Virsi-A.

“As long as the fuel market is free, there will be no shortages. It is regional factors that affect fuel prices. Some changes could hit retailers. They will probably have to change their fuel supply logistics. Thus, their profit might drop. But this does not apply to end users,” says independent fuel industry expert Ugis Sakne.

He adds that Latvia must keep an eye on the worsening relations with Eastern Europe, as any escalations could boost fuel prices.

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