Sales volumes surge in wake of Estonia's gasoline price war
A price war among major retailers in early September drove down fuel prices, prompting people to buy more and fill up larger amounts, though sellers won't share exact figures.
The price war that began on September 1 with Neste's fuel price cut has also affected sales volumes at filling stations.
Indrek Sassi, head of motor fuels at Circle K, told ERR that fuel sales at Circle K stations have increased during this period.
"Due to the highly competitive environment, we can't disclose specific figures for comparison," he said.
The average amount of fuel purchased per visit by private customers has also grown. However, Sassi declined to reveal by how much.
Matti Tähti, CEO of Neste Estonia, said their customers are refueling based on need. "Customers have responded very positively to the new Neste Express concept," he added.
According to Tähti, this indicates that simplifying the system and eliminating variable discount campaigns aligns with their customers' expectations. He emphasized that they do not intend to keep pump prices lower as just a short-term promotion.
Tarmo Kärsna, head of business development at Alexela, noted that fuel consumption at stations rose noticeably in the first few days of the price drop, as customers rushed to take advantage of the lower prices.
"This was followed by days when people refueled less than usual, as many had already filled up their tanks," he explained, adding that fuel sales are closely tied to both price levels and consumer behavior.
Consumption stabilizing
According to Kärsna, fuel consumption has begun to stabilize over the past two weeks, with refueling habits returning to normal. However, he does not consider the current situation in the fuel market to be normal. He noted that the visible drop in pump prices created the impression among consumers that they could achieve significant financial savings.
"In reality, the price differences between fuel retailers have been so minimal that for the average fill-up, the savings don't even amount to half the price of a cup of airport coffee," Kärsna said.
He added that the pricing pressure that began in early September, with prices in some cases falling below cost, is not sustainable.
"It's clear that such prices cannot last, and sooner or later we'll have to return to normal pricing levels," Kärsna said. He believes the key question is whether consumers value short-term savings or long-term value.
Fuel retailers have previously stated that at current price levels, it's not possible to turn a profit.
Sassi from Circle K pointed out that even increased sales volumes do not offset the losses caused by thinner margins.
Kärsna emphasized that Estonian-owned companies have built their loyalty programs not only around discounts at the pump but on overall value — such as ongoing savings and personalized offers across a broader range of services.
In contrast, Kärsna argued that international fuel corporations operating in Estonia do not contribute additional value locally. Therefore, each purchasing decision is also a value judgment — whether to support profits and investments that stay in Estonia or to send those profits abroad.
"During this kind of short-term price fest, when the focus shifts solely to immediate savings, it sidelines companies that are forced to sell fuel at a loss under price pressure. That in turn reduces their ability to invest back into Estonia's economy and local communities," Kärsna said.
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Editor: Marcus Turovski
