Palomo claimed his first win and leapfrogged Laurent Pellier - winner in the Canaries and in Poland - when his Opel Corsa rival rolled out of contention on the opening day.
The Rallye Team Spain youngster now tops the standings by five points with three rounds remaining. There’s a lot at stake, with an FIA Junior WRC prize drive on offer for the eventual champion - but Palomo is adamant he doesn’t want to lose focus.
“I am really happy at the moment,” he said. “This win is really important for our championship and the points situation, especially after Pellier had some bad luck.
“Liepāja is a really fast rally, and it’s really difficult to come here because there is nothing similar in Spain. At home, it’s quite similar to Fafe and Portugal, but coming here is like a different world.
“Of course, it’s a really amazing result for us, but now I need to stay focused. The rest of the season is coming fast and I want to keep working hard,” he added.