Fuel prices expected to start rising in Estonian gas stations later this week
Global oil prices have risen significantly in recent days due to the war in Iran. Retailer Alexela said a price increase can be expected in the second half of this week.
The rise in global oil prices has not yet been reflected one-to-one in fuel prices at Estonian gas stations.
According to Alan Vaht, a member of the management board of fuel seller Terminal, fuel prices have fluctuated recently.
"Although yesterday the price was raised by 3 to 5 cents compared with last Thursday, within half an hour the price dropped by 5 cents and it is now 10 cents lower than last Thursday," Vaht said.
Alexela board member Tarmo Kärsna said a more significant price increase can be expected in the second half of this week.
"Yesterday there was a price increase at Estonian gas stations; today a certain correction has taken place, but not to the same extent as in previous weeks. You could say it is already partly reflected at gas stations, but if the global market price stays at the same level or rises, then a price increase could certainly come in the second half of the week," Vaht said.
"I dare say that if yesterday we saw gasoline at €1.629 and diesel at €1.599, then this week we will see at least 10 cents added to that price, though it could be more," Vaht added.
Liquefied natural gas (LNG) has risen even more on the global market than oil, as gas from Qatar — one of the world's largest LNG producers — is currently stuck behind the Strait of Hormuz.
According to Margus Kaasik, chairman of the management board of Elenger, when the natural gas price increase reaches Estonian household consumers depends on their contract.
"Those who buy gas at a floating price — typically the TTF next-month index — will see significant changes starting in April, because March's price is already known and was formed in February. Those with a fixed price will keep that until their contract ends. If we are talking about the standard household customer package, which is a flexible package that we change as rarely as possible, it will not change from April and should change starting in May," Kaasik said.
"The positive side is that spring is coming, so less gas will be used for heating. At the same time, the gas storage filling period begins, when demand is mainly directed toward filling storage facilities. The biggest question mark is the availability of Qatari LNG, which makes up 10 to 15 percent of the total volume in Europe," Kärsna added.
Because of the cold winter, there are fewer reserves in storage than last year. As a result, they will likely have to be replenished at higher price levels, which will in turn raise gas prices for next winter.
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Editor: Marcus Turovski, Märten Hallismaa
