The Latvian Ministry of Climate and Energy (KEM) has addressed the current market situation concerning fuel prices, indicating that the cancelation of biofuel blend requirements alone will not ensure a decrease in fuel costs. They explained that removing these requirements wouldn't obligate fuel dealers to reduce their prices at gas stations. In contrast, a decrease in excise duty would lead to an automatic reduction for consumers, indicating a more direct form of financial relief.

KEM highlighted the complexity of contractual commitments fuel vendors have regarding biofuel procurement. Terminating or renegotiating these contracts may result in additional expenses, such as contract penalties, which complicates the potential for immediate price changes at the pump. Thus, they forecast that any effects on end-user fuel prices would not be immediate or straightforward, suggesting a need for careful consideration of any policy changes.

Additionally, the ministry noted that the primary influence on diesel fuel prices is the excise tax, rather than market resource prices which are similar across the board due to competitive conditions. This distinction illustrates the multifaceted nature of fuel pricing in Latvia and signals that while regulatory adjustments might be considered, they must acknowledge existing frameworks and market dynamics.