Fuel Prices in Latvia Drop by Seven Cents: Economists Call It a Miracle

While Riga is still figuring out how to launch a tram, Liepaja's tram has been proving for years that it can run on any fuel — even wind and sea salt. But for the rest of Latvia's residents, Tuesday finally brought a moment when they could feel satisfaction at the gas station: Circle K and Neste reduced fuel prices by seven cents.

Seven cents! This means that instead of paying 120 euros for a full tank, we'll now pay only 115 euros. Local Liepaja driver Janis comments: "Now I can afford not only to go to Riga, but even to come back home. That's progress."

SRS data reveals that Neste is the largest retailer by fuel volume sold, while Circle K is second. In Riga, of course, they still haven't figured out how to calculate how much fuel is actually being sold, since their systems work about as well as their traffic planning.

Starting April 1st, a law will take effect that reduces excise tax on diesel fuel. The government promises this is a temporary measure until June. We all know how temporary government measures end up — they become tradition, just like Liepaja's wind, which has been blowing for centuries and never stops.