In light of rising fuel prices, the Green and Farmers' Union (ZZS) in Latvia has prepared proposals for amendments to the excise duty law aimed at reducing the excise tax rate on diesel fuel used in agriculture. This initiative is designed to provide financial relief to farmers facing increased operational costs due to soaring diesel prices, which have seen rates in Latvia and Europe rise significantly, reaching between 1.90 and 2.40 euros per liter.

Furthermore, next week, Economics Minister Viktors Valainis from ZZS will present a plan to the government aimed at providing support to other sectors of the economy and to residents as well. The Ministry of Economics has submitted an informational report concerning measures for reducing fuel prices, although details of this report are currently restricted from public access. This indicates the government's awareness and response to the economic pressures affecting various sectors in Latvia, as well as the wider context of the rising costs of energy and fuel exacerbated by geopolitical tensions in the Middle East.

The rapid increase in fuel prices is attributed to the ongoing military conflict in the Middle East and the blockade of the Strait of Hormuz, through which approximately 20% of global oil is transported. These international events are significantly impacting fuel availability and costs, which not only affect agriculture but have broader implications for the overall economy in Latvia and the European context.