Tarmo Kärsna, area manager at fuel retail giant Alexela, said: "Natural gas prices have been in a downward trend since the beginning of the year, while the Dutch Stock Exchange Title Transfer Facility (TTF) index has fallen by approximately 17 percent as of the end of February, compared with January 1."

"On February 1, CNG prices at gas stations fell to €1.189 per kilogram. The natural gas price falls reach the gas stations after a delay of one month, and as the price of natural gas continues to fall, in the coming months, expect a drop in the price of CNG at Estonian gas stations as well," Kärsna went on.

Kärsna added that in the case of the production of CNG, given its very nature, requires powerful compressors to be used at gas stations, and the associated input cost of electricity used to power these compressors is an important component in the final output price of the product.

Kersti Tumm, communications and marketing manager at market leader Eesti Gaas, concurred that the price of CNG at gas stations includes, in addition to gas purchase prices, the input cost of electricity, to which Tumm added excise duty, the network service and some other costs relating to operating a filling station.

Tumm added that the market situation is taken into account when pricing.

She said: "The price of CNG is in line with the price of natural gas procurement and production costs, while reducing that price has not been justified at this time."

Eesti Gaas from January cut prices to home consumers in increments, starting from a drop to 60 cents per cubic meter, then in February to 49.5 cents per cubic meter, and to 46 cents per cubic meter this month. From April, Eesti Gaas will reduce the price further to 42 cents per cubic meter inclusive of sales taxes.

In February, Alexela lowered its price by 18.5 percent compared with January, then in March by an additional 7 percent; the new price in March stands at 45 cents per cubic meter including sales tax.

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