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Latvia and Montenegro Face Fuel Price Crises as Officials Urge Action

Fuel price crisis in Latvia and Montenegro
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Latvian Economics Minister Viktors Valainis sent a letter to the Cabinet of Ministers on July 28, 2026, urging early preparation of support measures.

Surging global oil costs are driving domestic fuel prices higher across European nations.

Data from the Ministry of Economics shows Brent crude oil prices jumped 14.5 percent between July 21 and July 27.

ICE Low Sulphur Gasoil rose 17.1 percent during the same period.

The rapid shifts prompted calls for preemptive fiscal action across eastern European governments.

Valainis emphasized that delaying preparation until market conditions reach legal crisis thresholds would create unnecessary political and economic pressure on households and public services.

"In my view, our responsibility is to act preventively rather than wait until a crisis has already arrived," said Viktors Valainis, Latvian Minister of Economics.

He noted that designing support mechanisms during an emergency takes significantly longer than preparing them in advance.

The minister noted that increased fuel costs have already expanded operating expenses for public institutions. He specifically highlighted healthcare and interior sector budgets that require protection.

Meanwhile, opposition figures in Montenegro criticized recent domestic tax policy shifts that increased retail fuel costs.

European Union MP Boris Mugoša stated that the Montenegrin government reduced its diesel excise tax cut from 30 percent to 20 percent while completely ending gasoline tax relief.

"For example, citizens pay 45 cents more per liter of diesel than they did a few months ago, or 34 percent more expensive," said Boris Mugoša.

"On the difference of 45 cents, the state earns an additional eight cents per liter based on the value added tax (VAT), which is calculated on excise duties."

Mugoša urged the government to restore the 30 percent reduction or utilize the statutory maximum 50 percent excise tax discount to relieve consumer pressure.

He argued that higher energy fees drive up broader market costs for essential services and retail goods.

"Inflation is good for the budget, but bad for citizens - the foundation of the economic logic of the Government and the majority," said Boris Mugoša.

"The Government continues to profit at the expense of citizens and a part of the economy, which unfortunately are the only ones bearing the burden of the energy crisis."

Mugoša added that state tax collection totals roughly 75 cents per liter of fuel through combined sales and excise levies.

He criticized the government's communication, saying it announced a convoluted continuation of excise duty reduction on Eurodiesel during the tourist season instead of transparently stating the cuts.

Latvia currently maintains its Law on Limiting Fuel Price Increases.

The law reduced the diesel excise duty from 467 euros to 396 euros per 1,000 liters through the end of the year.

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