Estonian gas stations end Neste-initiated price war
Fuel sold at unusually low prices at gas stations since the start of September suddenly became significantly more expensive on Monday.
On Monday morning, diesel fuel at a Neste gas station cost €1.239 per liter and 95-octane gasoline €1.364. By the afternoon, however, prices had climbed considerably: diesel was selling for €1.409 per liter and 95-octane gasoline for €1.549.
Commenting on the reasons behind the increase, Neste Estonia CEO Matti Tähti was vague, noting that prices are shaped by a variety of global and local factors, including world market prices, exchange rates, taxes and local competition.
"We constantly monitor these elements to ensure that customers always get quality fuel at a favorable price when filling up at Neste Express stations," he said.
The price race on Estonia's fuel market began on September 1, when Neste announced it was discontinuing discount cards and lowering pump prices. Other gas stations soon followed.
At the same time, competitors said that at such low prices it was impossible to turn a profit. Both Circle K and Alexela also predicted then that prices would not remain that low for long.
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Editor: Karin Koppel, Marcus Turovski
