\*\*There is currently no panic over fuel supply or rapid price hikes due to the events in the Middle East, said Ieva Ligere, chair of the Latvian Fuel Traders Association, in an interview on Latvian Television's "Rīta Panorāma" programme on Wednesday morning.\*\*

Due to threats from Iran, shipping traffic has effectively come to a halt in the Strait of Hormuz, through which approximately one-fifth of the world's crude oil is transported. Since last weekend, this has affected oil and fuel prices on the stock exchange and has also been reflected very quickly in fuel prices. In Latvia, stock market prices for fuel rose by 16% on Monday compared to Friday, and by another 14.6% on Tuesday compared to Monday. On Friday, a litre of diesel fuel cost an average of €1.54, but on Tuesday, it cost €1.59, Ligere noted.

"We are gradually seeing this, but the increase is smaller than the increase in fuel exchange prices," she said, explaining that each trader's stocks and ability to adjust prices may vary. This affects forecasts of future price changes.

"Each fuel supplier makes forecasts based on their purchases and stocks, as well as by observing the situation on the exchanges," Ligere said.

Each country's fuel market also reacts according to its own specifics. In Lithuania, the increase per litre of fuel has been more rapid – 12.7%, in Estonia 5.7%, and in Latvia 3.2%.

"The increase in Latvia is a little more moderate," said Ligere, urging the public not to react by stockpiling fuel.

"There is no need to panic about fuel supplies in Latvia. There are no forecasts that the price of fuel could rise by 20-30 cents a day," emphasised the head of the Latvian Fuel Traders Association.

She refrained from predicting changes in fuel prices as the conflict in the Middle East continues and drags on. "Time will tell how the market will adjust to this situation." At the same time, the higher the dollar exchange rate, the greater the impact, as fuel supplies are paid for in dollars.

No signs of fuel supply issues in Latvia, says association