Lux Express warns of fare rise if diesel prices stay high

Lux Express may raise fares again if diesel prices do not fall by November, the bus company’s chief executive told ERR. Bus fuel costs are now more than 30 percent above the level forecast for this year.

The company has already adjusted ticket prices. If fuel remains expensive, full-fare tickets on the Tallinn to Narva and Tallinn to Pärnu routes could rise by about 50 cents to one euro, chief executive Ingmar Roos said. He said the company relies solely on ticket revenue and needs to pass on some of the higher costs.

The Estonian Chamber of Commerce and Industry has asked the government to lower the diesel excise duty to the minimum level. Director general Mait Palts said this would not make up for all the fuel price increases, but could ease the pressure on businesses and consumers. He said costs had risen by millions of euros in recent months.

The global market price of diesel is twice what it was a year ago, according to the report. DSV Estonia board chair Alvar Tõruke said fuel costs affect transport, manufacturing and retail businesses. His company now adjusts its fuel cost calculations weekly rather than monthly because of price volatility.

The government says lowering the excise duty is not possible. Climate Minister Erkki Keldo said reducing it to the minimum rate would cost 210 million euros for a full year, and the money would have to come from elsewhere. He said the government must also consider economic competitiveness and the state’s financial position.