The representatives of the organizations write that Estonia's current diesel excise rate is 428 euros per 1000 liters. Although the government has announced that the excise increase planned for May 1 will be cancelled, this is not enough in a situation where neighboring countries are implementing or preparing additional measures to ease fuel‑price pressures.

"Therefore, we call on the government and the Riigikogu to temporarily lower the diesel excise duty to the EU minimum level — 330 euros per 1000 liters — for at least three months or until the fuel market stabilizes, in order to mitigate the impact of the energy crisis on Estonian businesses and people and to preserve the competitiveness of the Estonian economy."

In Latvia, a temporarily reduced diesel excise rate of 396 euros per 1000 liters is in effect from April 1 until June 30, 2026. Poland has reduced the diesel tax burden to the EU minimum level, and Lithuania has also proposed a temporary reduction of diesel excise duty.

"This means that Estonian companies are operating in an increasingly unfavorable competitive environment as our neighbors adjust their tax burdens while Estonia does not. If Estonia does not temporarily reduce the diesel excise duty, it will mean higher input costs and weaker competitiveness for the transport, logistics, manufacturing, forestry, and agricultural sectors compared with neighboring countries," the letter states.

It is signed by Krista Maria‑Alas, CEO of the Estonian Transport Fuel Association; Kersten Kattai, CEO of the Estonian Bus and Coach Association; Herkki Kitsing, board member of the Estonian Logistics and Freight Forwarding Association; Tiit Parik, chairman of the council of the Estonian Association of International Road Carriers; and Tõnis Hintsov, board member of the Estonian Supply Chain Management Association PROLOG.

They also argue that a temporary reduction in diesel excise duty would not be an additional cost to the state budget — on the contrary, higher fuel prices bring in more VAT revenue. This additional VAT revenue, they say, gives the state enough fiscal space to temporarily lower the excise duty to the EU minimum.

"Other countries have used the same logic to justify their excise reductions: higher fuel prices generate higher VAT revenue, which makes it possible to temporarily lower excise duty. Therefore, the question now is not whether lowering excise duty would encourage consumption. The question is whether the Estonian state is willing to protect the competitiveness of its businesses, slow down cost pressures across the economy, and avoid a situation where refueling once again moves across the border along with tax revenue."

The organizations remind that earlier experience from 2016–2018 showed clearly that too high a diesel excise duty pushes refueling to neighboring countries, and in the end the state itself loses out.

A similar proposal was already made last week separately by the Estonian Transport Fuel Association, but it received a cold response from Minister of Finance Jürgen Ligi, who called it a foolish idea.

"If we start lowering excise duty, the buyer will not actually see it — it has virtually no effect," Ligi said.

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