The recent price drop of Brent crude to $75 per barrel could manifest in Estonian filling stations in the coming days provided the world market price doesn't bounce back.
"The prices of ready-to-use motor fuels always take a few days to catch up. Diesel and gasoline prices started coming down in light of the Brent decision yesterday. Provided the price will not bounce back straight away in a day or two, prices should fall in Estonia in the coming days," said Tarmo Kärsna, member of the board of fuel retailer Alexela.
"But let us wait and see. Last summer we saw situations where the price came down only to jump back to the previous level less than two days later. The price dip yesterday was largely the consequence of banking panic in America," Kärsna suggested, adding that the coming days will tell.
Neste did not wish to talk about prices, while a spokesperson said that the company closely monitors the world market and the price level of motor fuel in Estonia. "We also maintain fuel reserves bought at former prices. This also affects price formation. But we will see what will happen," said Dennis Antamo, director of Neste Estonia.
Neste said it maintains fuel stockpiles in gas stations and the Muuga terminal, while Antamo refused to say how long existing reserves will last. "Naturally, we do not give out such information," he said.
Asked whether customers should put back filling their tanks, Antamo said it makes no sense as the potential price dip will not be steep. "Looking at price changes on the Estonian market, they are usually modest. A few cents per liter up or down. Refueling should be done when necessary. Sometimes you save a few cents and sometimes you pay a little more," he added.
The price of Brent crude dropped below $75 per barrel on Wednesday. The last time Brent crude traded this low was in the fall of 2021.
Editor: Marcus Turovski