Starting Thursday, October 1, the excise tax rates on automotive fuel in Latvia have been reduced. The excise tax on gasoline has decreased by 11.7%, while the tax on diesel fuel has been reduced by 16.7%. This was reported by [TV3 News](https://tv3.lv/zinas/latvija/no-ritdienas-samazina-akcizi-degvielai-tacu-uz-butisku-ietaupijumu-auto-ipasnieki-var-neceret/). Despite the changes coming into effect, a noticeable decrease in fuel prices at gas stations is not expected on the first day. As industry representatives explain, gas stations will gradually receive batches of fuel that have already been processed under the new excise tax rate. "Only now are traders beginning to transport fuel with the reduced excise tax rate from excise warehouses to gas stations. Therefore, the price reduction will occur gradually," explained Ieva Ligere, Executive Director of the Latvian Association of Fuel Traders. According to her, the cost of fuel today is influenced not only by tax policy but also by the situation in the global market. The association notes that prices for gasoline and diesel in Latvia are currently at a record high, and further developments in the Middle East could push oil prices up again. "The reduction in excise tax will affect the price in any case. But if a new escalation occurs in the Middle East and global prices rise again, this savings could be completely negated," Ligere noted. Drivers surveyed also do not expect a significant decrease in prices. Some believe that fuel costs will only return to previous levels after the recent price increase, while others hope for at least a small savings. As of the day before the new rates came into effect, diesel fuel was priced at around 2.24 euros per liter, and gasoline was about 2.09 euros, marking the highest level in the history of observations. The Association of Fuel Traders also notes a change in demand structure. Recently, gasoline sales have been increasing, while the demand for diesel fuel is declining. One possible reason specialists cite is the increase in the number of hybrid vehicles on the roads. The reduction in excise tax should gradually reflect on fuel prices; however, the final price at gas stations will still depend on the situation in the global oil market.