Price of diesel falls below a euro per liter

Fuel company Jetoil was the first to lower the price of diesel below a euro per liter on Thursday, followed by Olerex, Neste, Alexela and Circle K later.

According to Alan Vaht, board member at fuel company Alexela, further decrease in fuel prices is expected elsewhere due to cuts in excise duty.

"Unfortunately, the world market prices are rising. The price of diesel fuel has risen by two cents per liter and the price of gasoline by one cent per liter. The prices are going up and down," Vaht said, remarking that storage facilities are full, there is nowhere to store crude oil and this will keep fuel prices low throughout the year. Prices will not rise before OPEC decides to scale back production.

On Tuesday, Vaht predicted the price of 95-octane gasoline to fall as well, but the price of petrol has risen by a cent on the world market. "I thought the price could drop by a couple of cents but after seeing the volatility in yesterday's prices I wouldn't predict it so boldly," he told ERR's online news in Estonian.

"Competition is what drives prices up and down. Consumers have clear expectations. I believe the price of diesel will drop below a euro," Vaht said. Later on Thursday afternoon, it did.

The government cut excise duty on diesel as part of its economic aid package in the wake of the COVID-19 pandemic, meaning from Friday, May 1, fuel sellers are likely to lower prices at pump by 14.5 cents per liter, from the current level of €1.199 per liter, which it has been at for a couple of weeks, at least in Tallinn, to €1.054.


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Editor: Anders Nõmm

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