At the beginning of the year, Lithuania raised the excise tax on diesel fuel, and now it is significantly higher there than in Estonia. And although the demand for diesel within Estonia is decreasing, thanks to Latvian and Lithuanian buyers, its total sales volume has increased this year.
While Estonian drivers used to fill up in Latvia where fuel was cheaper, the situation has completely changed over the past few years.
"In Estonia, the excise tax on diesel fuel is the lowest in the Baltic States. The difference with Latvia is a few cents, and with Lithuania, it is a full 10 cents excluding the value-added tax. Considering the price war on fuel that began in September, the gap has become even more significant," quotes the ERR portal Alan Vaht, a member of the board of the Terminal company.
After the increase in excise tax in Lithuania and the rise in fuel prices, Lithuanian truck drivers are increasingly choosing Estonia for refueling before long-haul trips.
"Next year, the excise tax in Estonia, Latvia, and Lithuania will increase, but in Estonia, it will still remain 1 cent lower compared to Latvia and 14 cents lower compared to Lithuania, excluding the value-added tax. In 2027, the excise tax will rise again in both Estonia and Lithuania, but the difference will remain the same – 14 cents," said Vaht.
