Estonian fuel seller Alexela Oil posted sales totaling 118.1 million euros in 2016, compared to 121.6 million euros a year earlier. The drop in revenue resulted from a decline in transport sector fuelings and the drop in oil prices during the first half of last year, CEO Ain Kuusik said.
"More and more transport companies are refueling in Latvia or Lithuania, where diesel fuel costs less thanks to lower excise duties," Kuusik said.
"It is clear that one cannot survive solely by selling fuel, which is why more and more small players on the market are pulling out of this business," he continued, adding that the new year would see the continuing trend of small fuel companies selling their businesses to one of the four large companies in the country.
Alexela Oil opened new gas stations in Võsu, Kaberneeme and the southern part of the Western Estonian island of Muhu, acquired a small chain of gas stations, thus expanding to Saue and Vändra, as well as acquired additional gas stations in Jüri and Jõgeva. New LPG gas stations were likewise built in Tallinn's Mustamäe district, Pärnu and Karksi-Nuia.
The new year will bring with it several major changes on the fuel market — excise duties will increase again in February and beginning in the spring, adding biofuels to gasoline and diesel fuel will become mandatory. The combined effect of both decisions will be increased in gas price hikes. "At today's oil prices, gas should cost eight cents more [per liter] in June," Kuusik said.
Alexela Oil, a company belonging to Alexela Group, owns 71 gas stations, of which 23 operate convenience stores as well.
Editor: Editor: Aili Vahtla