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November fuel figures: Consumption in border counties rising

Prices at an Alexela gas station. Photo is illustrative.
Prices at an Alexela gas station. Photo is illustrative. Source: Siim Lõvi/ERR

Overall fuel consumption in November remained steady on year, however three counties along Estonia's borders saw the sale of 1.1 million more liters of diesel on year last month.

The consumption dynamics of the last few months do a good job reflecting the price sensitivity of people in Estonia, Estonian Oil Association CEO Mart Raamat said. The price of gasoline was €0.04 per liter cheaper last month than in October and consumption grew.

According to Raamat, the significant increase in liquefied petroleum gas (LPG) sales volumes also shows that people are seeking cheaper solutions.

"LPG sales in November increased by a whole 25 percent on year — the cheap price is drawing more and more consumers to LPG," he noted.

Diesel fuel consumption, which had been on the decline in both September and October, increased 1.2 percent in November. Raamat said that in the case of diesel, the transport sector is clearly the biggest consumer.

"Approximately 50 percent of all diesel fuel sold in Estonia ends up in trucks or vans, and carriers' activity thus has the biggest impact on diesel fuel sales figures," he explained.

According to the fuel retail representative, the most positive surprise has been the continued growth of fuel sales figures in Estonia's border counties.

"While the closure of the Russian border to EU carriers plays a significant role in Ida-Viru County, forcing carriers operating in the [northeastern] region to fill up in Estonia, in the case of Pärnu and Valga counties — where sales figures in November were up 8 and 19 percent, respectively — we're still seeing the positive impacts of the excise duty reduction of 2020," Raamat highlighted.

Based on Estonian Tax and Customs Board (MTA) figures, in the first 11 months of 2022, 130 percent and 53 percent more fuel, respectively, have been sold in Valga and Pärnu counties than in the year prior to the excise duty reduction.

"As border counties' sales figures are continuing to grow by month, then the process of bringing excise money back to Estonia is still ongoing," Raamat said.

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Editor: Aili Vahtla

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