This year fuel prices should stabilise. Fuel consumption should stabilise around the level of 2022, says Neste Latvija LLC board chairman Armands Beiziķis.
He explained that it is very difficult to predict what will happen with fuel prices. «We expect that at the start of 2023, when EU sanctions will come into force and they will start affecting oil offers, price may increase, but I don’t think it will be for long. The price rise itself should not be high,» said Beiziķis, adding that
currently prices are in the stage of decline at the moment, because prices are also affected by the recession, which has already begun.
The head of Neste Latvija also said that for approximately two years diesel fuel consumption was approximately on the same level. He believes this is where it should stabilise. Beiziķis explained that in 2021 fuel prices were very strongly affected by Covid-19 pandemic and associated restrictions. In 2022 there was the war, high prices and additional costs for other energy resources.
«In 2023 prices should stabiise. Consumption should stabilise on the level of 2022. This should be the most optimal, normal level for Latvia,» said Neste Latvija manager. He added that petrol consumption may go down. In 2022 there was a 5-7% drop already.
Beiziķis explained that it is likely that petrol consumption will continue going down, perhaps not as rapidly, because the second hand car market is mostly dominated by diesel cars. At the same time, cars with more economic fuel consumption continue entering the market.
Also read: Latvia reports smallest number of new registered businesses since 2004