Latvia is looking for a way to reduce fuel prices: how much drivers can save

Latvia is looking for a way to reduce fuel prices: how much drivers can save

The Ministry of Economics of Latvia has named one of the fastest ways to lower prices at gas stations — to reduce the VAT on fuel from the current 21% to 12%. If the tax relief is fully reflected in retail prices, the price of diesel could decrease by approximately 16–17 cents per liter, and gasoline by 14–15 cents. These calculations are confirmed by the published position of the ministry.

The Ministry of Economics believes that to combat high fuel prices, several tools should be used simultaneously. However, the reduction of VAT is considered one of the quickest options.