On Thursday morning, Estonian gas station chains Terminal Oil and Circle K reduced gasoline and diesel prices at the pump. Before the changes, a liter of 95-octane gasoline cost €1.819, with diesel at €1.719. However, in the early hours of Thursday morning, those prices were cut to €1.779 and €1.679 per liter respectively.
Terminal Oil CEO Jörgen Õigus said that the main reason for the price drop was the fall in the prices of end products on the global market.
Indrek Sassi, pricing manager at Circle K Estonia, agreed with that assessment. "Over the past week, the price of crude oil on the world market has fallen due to the World Bank's weak economic forecast," Sassi said.
According to Sassi, the fall in global prices is due to the bleak economic outlook, which outweighs the production cuts made by Saudi Arabia and Russia in recent weeks in an attempt to push up crude oil prices on the world market.
Sassi also said that the global price will be affected by the general negative effects of continued high inflation. "Analysts are forecasting that high inflation could lead to another 0.25 percent rise in U.S. interest rates this year. This, in turn, will dampen the economy and reduce demand for oil products," he said.
Editor: Michael Cole