Estonian Logistics and Freight Transport Association and Estonian Automobile Companies Association have voiced concerns about Latvia’s decisions to temporarily lift the requirement for mandatory biofuel mixing. According to Estonian carriers, this decision has changed regional competition and restores Latvia’s advantages.
«If the goal set by Latvian Ministry of Economy to reduce fuel price by ten cents is accomplished, we will definitely see a return of the practice when Estonian transport companies partially refuel on the other side of our country’s border,» said Estonian Logistics and Freight Transport Association board member Herki Kitsinga.
Estonian Oil Association board chairman Mart Raamat is confident the situation will deteriorate even further next spring.
«Current laws state that in spring 2023 Estonia will increase the excise tax for diesel fuel again, so we expect the all-time biggest fuel price difference between Estonia and Latvia.»
Raamat also added that Estonia’s budget may lose more than EUR 15 million from this.
Russia’s war in Ukraine also has a negative impact on operations of Estonian transport companies. «Russia, Belarus and Ukraine were important markets for many of our carrier sin the past. Now all transports there are completely discontinued,» added Kitsinga.
The latest data from Estonian Statistics Office indicate that in Q1 the balance of road transport sector’s exports was EUR 48 million, which is nearly 27% less when compared to January-March of last year.
As previously reported, Latvia has decided that from July until the end of 2023 biofuel mixing will not be mandatory.