Latvian parliament moves to suspend fuel reserve fee to lower prices

The Saeima Budget and Finance (Tax) Committee gave first-reading approval to amendments drafted by the Union of Greens and Farmers that would temporarily suspend the security reserve service fee on fuel, which has been set at 81.26 euros per tonne. The suspension is intended to last until the end of one outlet year, with the expectation that prices could fall by about eight cents per litre if the savings are transferred to consumers.

The committee also requested an opinion from the National Security Committee, warning against casual changes to strategic fuel reserves. A proposal to cut the fuel VAT rate from 21% to 12% was not considered because a quorum was not reached, which the party attributed to poor planning and reluctance to address the tax issue. The bill is slated for further debate in the Saeima. Additional measures previously approved include reductions in excise duties that are expected to lower retail fuel prices by eight cents per litre.