Fuel excise duties to increase from May next year

Pumps at a gas station.
Pumps at a gas station. Source: Ken Mürk/ERR

Estonia's incoming Minister of Finance Mart Võrklaev (Reform) said, that in line with previous government decisions, fuel excise duties will increase from next May.

 In spring 2020, in order to help mitigate the impact of the coronavirus pandemic, the government cut fuel excise duties for a two-year period affective until April 30, 2022. This brought the excise duty on diesel fuel to €372 per 1,000 liters. Excise duties on special diesel, light and heavy fuel oil, natural gas and electricity were also reduced.

In the fall of 2021, the Riigikogu adopted legislative amendments extending the reduced excise rates until April 30 this year.

Then, last fall, the government decided to extend the period for which excise duty would remain at current rates for another year, thus postponing the price increase until spring 2024.

This also means that the steep rise in excise duties on fuel and electricity back to pre-pandemic levels, which was due to begin this May, will now happen in May 2024 instead.

During the coalition negotiations, it was decided that, as far as the planned rise in excise duties is concerned, nothing would be changed, Võrklaev told ERR.

"The decisions, which have been made will remain in force," Võrklaev said. "The increase in excise duties has been envisioned and there are no plans to change this decision at the moment. What has been decided is that the plan will remain in force."

Excise duties on diesel will gradually increase between 2024 and 2027, eventually reaching pre-pandemic levels of €493 per 1,000 liters.


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Editor: Michael Cole

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