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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure LV-2022-19/3145 – measures in Latvia

Support for households with propane-butane gas and diesel fuel heating

Atbalsts mājsaimniecībām ar propāna-butāna gāzes un dīzeļdegvielas apkuri

Country Latvia , applies nationwide
Time period Temporary, 01 May 2022 – 30 April 2023
Context War in Ukraine, Cost of Living Crisis
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Support for energy bills
Author Kriss Karnitis (EPC) and Eurofound
Measure added 28 March 2023 (updated 06 July 2023)

Background information

As the price of energy resources was still extraordinarily high, the government has decided to approve the support for households with propane-butane gas and diesel fuel heating. The assistance package was prepared by the Ministry of Climate and Energy. It was approved as the amendments to the law on measures to reduce the extraordinary increase in energy prices, adopted by the Parliament (Saeima) on 11 August 2022 as a matter of urgency. The amendments came into force on 11 February 2023. Related measures are Support for household heating expenses and Additional measures to support for household energy expenses

Content of measure

The increase in the cost of liquefied petroleum gas and labelled diesel fuel is compensated in the amount of 50% above the specified threshold, which is equivalent to the average tariff for thermal energy in the previous heating season - €70 per MWh. Compensation is provided not more than a certain amount, which is sufficient to ensure the heat supply of one household.

The increase in the cost of liquefied petroleum gas (propane - butane gas) is compensated up to 1 ton of liquefied petroleum gas, if the cost exceeds €0.91 per kg, but no more than €1.29 per kg.

The increase in the cost of labelled diesel fuel for heating is compensated by up to 4,000 litres of fuel, if the cost exceeds €0.69 per litre, but no more than €2.01 per litre.

The total funding required for this support is €10,943,340.

Use of measure

Currently, there are around 4,500 households in Latvia that use liquefied petroleum gas for heating and hot water, while around 3,100 households provide heat with labelled diesel fuel, which can be purchased for heating purposes with a reduced excise duty.

Target groups

Workers Businesses Citizens
Does not apply to workers Does not apply to businesses Other groups of citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement as case not in social partner domain No involvement as case not in social partner domain
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

No involvement to report.

Views and reactions

No specific views to report.

Sources

  • 17 January 2023: The government approves support for households with propane-butane gas and diesel fuel heating (www.mk.gov.lv)
  • 09 February 2023: Households with oil gas and diesel heating will also receive state support (www.lsm.lv)
  • 13 March 2023: Energoresursu cenu ārkārtēja pieauguma samazinājuma pasākumu likums 17 Martch 2023 (likumi.lv)

Citation

Eurofound (2023), Support for households with propane-butane gas and diesel fuel heating, measure LV-2022-19/3145 (measures in Latvia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LV-2022-19_3145.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.