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Circle K: We and other fuel sellers on board with diesel excise duty cuts

Circle K CEO Kai Realo.
Circle K CEO Kai Realo. Source: Kaupo Kikkas

Fuel retailer Circle K says that announced cuts in diesel excise duties, part of the government's emergency measures package to stimulate the economy in the wake of the COVID-19 coronavirus pandemic, are welcome to the sector as a whole. Circle K says it will pass on the duty cuts to the price at pump within days.

Speaking on ETV current affairs show "Aktuaalne kaamera" Thursday night, Circle K chief Kai Realo said that Circle K filling stations will reduce diesel prices by at least the same amount as the duty cut – reported to be 14.3 cents per liter and equalizing retail diesel prices with those in Lithuania – within a few days of the cut coming into force.

"I'm pretty certain this news will also be positive for fuel sellers. We will definitely try to pass it on to prices almost immediately. There should surely be a price cut right away, at the same level as the excise reduction. There's no doubt about that," Realo said.

Realo added that the price would fall at Circle K stations five days after the excise duty cuts come into effect, which is enough time for its outlets to sell off older diesel purchased at pre-excise cut prices.

MP and Riigikogu finance committee chair Aivar Kokk (Isamaa) said Wednesday that diesel excise duty would be reduced by 14.3 cents per liter. Excise duty cuts are also due on electricity and natural gas, but not gasoline, Kokk said.

The excise duty cuts will cost the state budget around €140 million, and should not last longer than two years, Kokk said.

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Editor: Andrew Whyte

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