Fuel prices rose sharply in 2022 after Russia invaded Ukraine. On the other hand, during this year, prices fell: it depended on the shortcomings in the oil sanctions against Russia, on the slowing down of economic growth, and even recession was observed in several countries.
Following a 2022 fuel price hike that sent a chain reaction to other costs, the government lifted the mandatory bio-admixture for fuel in July of that year, an order that was in place until December 31 last year. Well, the new year has come with “green” fuel, so we are expecting a price increase.
In a publication on the “la.lv” portal, the chairman of the board of the Latvian Association of Fuel Dealers, Ojārs Karčevskis, explains: “In Latvia, bio-admixture will return in 2024, but gasoline with this admixture will gradually return to sales at gas stations. In other words, from January 1st, 10% of bioethanol will already be added to the gasoline that will be taken from wholesale warehouses to filling stations in Latvia.” It is impossible to say exactly when the price increase will “come”, because the “old” fuel has yet to be sold.
The EU has already set the minimum excise tax rate for fuel, but the size of this rate will be determined by each country. Being an extremely rich country, we have the highest excise tax rate on diesel fuel: behind us are Estonia, Lithuania and Poland. Here, the diesel fuel tax rate is five cents higher than in Estonia and Lithuania.
The upcoming trading of emission allowances is also extremely pleasing, as well as the Climate Law, which is still being drafted, and then, of course, the climate-neutral and sustainable economy will come into being – whatever that means.
This new tax, which can be called another robbery, will come into force in 2026/2027. per year and will affect both housing and transport. If we take into account the current prices of emission allowances, a liter of fuel could cost 15 cents more, however, some experts claim that the price could rise by as much as 40 cents per liter of fuel.
Such a price increase will be imposed to encourage both private individuals and entrepreneurs to switch to transport powered by so-called renewable forms of energy: biomethane, hydrogen, electricity. Another question: how many will have the means to buy such transport, which does not run on fossil fuels, but on so-called renewable energy carriers.
Transport expert and member of the Saeima Andris Kulbergs (AS) says in a conversation with “Neatkarisgo”: “The issue of using bio-additives in fuel has always been controversial. Car manufacturers have said that gasoline should not contain more than 10% of these additives, and diesel – no more than seven percent. Because the EU has decided, we cannot choose not to put this bio additive.”
Kulberg admits that this bio-additive, which will make fuel more expensive, will automatically “interfere” in food production – it will also become more expensive. So why was this intermarriage necessary at all? “Because bio-additives are a renewable resource,” said Kulberg, “and the authors of this opinion hope to reduce the amount of fossil fuels in this way. It must be said that the engines of the cars manufactured today are already starting to be adapted to biofuel, but older cars can suffer… In addition, this bio-additive should not be added to winter diesel fuel: the fuel turns into a mush in the cold.”
Kulberg also reminds that from 2027, a carbon tax will be added to all fuels – gasoline, diesel and gas – which will be introduced centrally for all EU member states. This will make fossil fuels much more expensive. “The main goal is to make electric cars more interesting,” said Kulberg, “all this together will create a situation where transportation becomes more expensive. This “event” for many
will become financially unaffordable for people, making all mobility more expensive and even impossible. The big idea is to force people to switch from private cars to public transport.”
Kulberg agrees that nature should be preserved, but such “carbon decisions” are quite absurd. “We are arguing here about what the car’s side mirror should be, so that it does not block the wind too much,” quips Kulberg, “we fight against every milligram of CO2, but the eastern neighbor can push the button, start a war, send missiles to destroy thousands of buildings. So what resources will be needed to restore everything? How does it go with Europe’s “green” course? Maybe it’s cheaper to stop Putin than to fight against some kind of emissions?”
2024-01-06 03:15:35
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