Revenue of »retail sale of automotive fuel in specialised stores« in Latvia 2011-2023
The fuel retail sector is facing an uncertain future in Europe. The EU commission is in talks to ban fossil fuel cars in the medium to long term, owing to the growing environmental hazardous and to achieve their aim of zero greenhouse gas emissions by 2050. As a result, revenues of the fuel retail sector are experiencing a decline in majority of the European nations, including Czechia, Norway and Finland to name a few. The situation is no different in Latvia, with revenues projected to decline from 1.4 billion U.S. dollars in 2012 to 1.1 billion U.S. dollars by 2023. Additionally, the rising prices of fossil fuels such as gasoline and diesel have not augured well for the sector, resulting in a falling consumer demand.
The growth of the electric and hybrid vehicle market is set to further impact the industry in the medium to long term. Apart from being eco-friendly, the fuel costs for hybrid vehicles are far lower. The government is offering various benefits on electric vehicles such as subsidies on vehicle operating tax and free parking in various parking lots across the country. Experts predict that the number of electric vehicles in the country will exceed 36,000 by 2030.
