Measures are being prepared to limit fuel price increases starting in April. Plans include reducing the excise tax on fuel and introducing a windfall profit tax on fuel retail sales. The government discussed this on Tuesday, 17th March, and Economics Minister Viktors Valainis (Union of Greens and Farmers) spoke about it at a press conference following the government meeting.
Plans are in place to draft a special law to temporarily limit excise tax on fuel. At the same time, a special algorithm for the so-called windfall profit tax is planned to ensure that “the sector does not generate additional profits due to global events,” the minister said.
“We have well-founded suspicions that current pricing policies are not in the public interest, and therefore, such solutions are necessary. Moreover, if we implement an excise tax reduction, these solutions are absolutely crucial to ensure they proceed in tandem and that we can be confident market participants will faithfully implement all these changes and that residents will see the effects as soon as possible when they fill up their tanks,” said Valainis.
The goal is to ensure that the retail price per litre of fuel does not exceed 1.80 euros. These changes are expected to take effect quite soon – by April, according to Prime Minister Evika Siliņa (New Unity).
The government could review specific proposals as early as next week.
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