Latvia's Prime Minister has announced potential implementation of a substantial excess profit tax aimed at fuel traders, emphasizing that the exact percentage is still under discussion. She mentioned that the government is preparing for this legislative move and highlighted a recent use of fuel reserves in the market, which was authorized by the international oversight committee. This proactive approach aims to stabilize fuel prices amid fluctuating market conditions.

The Prime Minister also noted that a reduction in excise tax might occur if the market price for fuel hits €1.85. However, without the introduction of the excess profit tax, this price drop might not effectively translate to lower costs for consumers. It reflects the government's attempt to balance revenue generation with consumer protection in the volatile fuel market, demonstrating a responsive strategy in light of current economic challenges.

Moreover, the Prime Minister expressed that while she does not foresee a significant budget impact from the tax reduction at present, should inflation levels remain high, alternative strategies will be sought to further lower prices for consumers. This nuanced financial approach indicates the government's readiness to adapt to ongoing economic fluctuations and prioritize consumer interests while maintaining fiscal responsibility.