On Tuesday, Terminal Oil lowered per liter prices of diesel to €0.879, which marks the lowest price in all of the Baltic states. The reduction was part of a campaign by the fuel retailer for Child Protection Day, which other retailers in Tartu went along with. Large retailers across Estonia however have not lowered prices.
Price per liter of 95-octane petrol at Terminal Oil is now €1.069 and the price of 98-octane petrol is €1.119.
Terminal Oil board member Raido Raudsepp told ERR the decision behind the drop in prices is also directly related to a price war in Tartu. He also noted oil prices are actually rising and keeping fuel prices low for longer is not sustainable.
"The decision was made because, for some reason in Tartu, prices were reduced and we decided that if they happen to be low, we'll make it so all over Estonia," said Raudsepp.
"Competition is strong. Diesel prices in Estonia are now the lowest in the Baltics, which is something we could not have possibly predicted six months ago," he added.
Prices in Tallinn however remain high. Circle K, Olerex, and Neste all have per liter prices of 95-octane petrol at €1.179, 98-octane petrol at €1.229, and diesel at €0.999. Cheapest fuel in Tallinn is offered by Jetoil, where the per liter price of 95-octane petrol is €1.099 and diesel is €0.929.
Fuel prices to jump in coming weeks
Alexela board member Alan Vaht said the price reduction in Tartu was related to a one-time campaign for Child Protection Day, which Alexela also decided to follow.
Vaht said the campaign is not sustainable and fuel prices are actually rising. "Petrol and diesel have endured a 6-9 percent rise in the last 30 days. Just today petrol prices have raised €0.017 per liter and diesel €0.012 per liter."
Vaht told ERR that the price of petrol has increased by €0.12 per liter and the price of diesel €0.08 since the end of April.
"The low prices in Tartu are not sustainable whatsoever, it's a campaign. Sad to say, but pressure to raise prices has hit the market and would indicate at some point, prices in Estonia will jump again. These levels won't stay for long," Vaht said.
"At one point, rising prices will be realized in Estonia as well, whether it be this week, next week, or mid-June," he added.
Editor: Kristjan Kallaste