Estonia keeps fuel reserves on market as prices remain high

Estonia’s fuel reserves centre does not currently plan to repurchase the fuel it released onto the open market in March because prices remain high, ERR reports. Estonia is not facing a fuel shortage, although commercial filling station stocks are limited.

The centre’s director, Ando Leppiman, said Estonia’s fuel reserves were in good condition. As of the end of August, the country had combined petrol and diesel reserves covering nearly 120 days of consumption, including both state-owned reserves and stocks held by fuel companies and importers.

Estonia released about 10 percent of its reserves in March, mainly petrol and smaller amounts of diesel and aviation fuel, after disruptions to oil shipments caused by the Iran crisis created supply risks.

Leppiman said the released fuel would not be bought back while prices were high, as further purchases could drive prices even higher. The reserves will be replenished once prices fall.

He made the comments in Croatia, where fuel-reserve agencies from 26 countries in Europe, Asia and the Americas are attending their annual meeting. Participants identified limited diesel availability and record prices as the main problem.

Reports from the participating countries showed that many had begun replenishing their reserves after the International Energy Agency’s coordinated release. Some countries had already restored their stocks, while others were continuing or preparing to do so.

In addition to state reserves, fuel companies maintain commercial stocks. Alan Vaht, a member of the management board of fuel company Terminal, said filling station stocks generally cover up to seven days of consumption.

Vaht said fuel shortages were not expected at Estonian filling stations. He added that the timing of any price decline would largely depend on how the Iran crisis is resolved, but he did not expect Iran and the United States to reach a peace agreement in the coming months.