Diesel surge may raise waste collection prices

Rising diesel prices could push up waste collection charges and increase farmers’ production costs, ERR reports. Diesel has climbed to nearly €2 a litre in Estonia this autumn amid the crisis in the Middle East.

Eesti Keskkonnateenused’ South region plans to start talks with local governments this year about raising waste collection prices. The company’s regional manager, Mart Laidmets, said contracts are usually signed for several years, making it difficult to anticipate a sudden rise in fuel costs.

“We have to discuss with municipalities whether they are willing to raise prices, and by how much,” Laidmets told ERR. Waste management charges rose substantially over the summer because of a state pollution fee, he said. With costs now rising sharply in other areas, the company has little room left to improve efficiency.

The company’s South region operates about 30 vehicles, serving Tartu and the Setomaa area, among other places. It uses around 60,000 litres of diesel a month. The company also relies on partners whose transport costs have increased, and who may add fuel surcharges when possible.

Farmers are also feeling the impact. Tõnis Soopalu, a grain grower in the Jõgevamaa region, said filling a 450-litre tractor tank used to cost €270; it now costs €550. That amount of fuel lasts for one working day.

When a combine harvester and grain dryer are running, daily consumption can exceed 1,000 litres, Soopalu said. That means fuel costs could rise from €600 to €1,200 a day. He said cutting back on inputs or skipping necessary work could reduce yields or cause grain to spoil in the dryer.

Soopalu said there was not yet reason for panic, but the changing situation made it difficult to plan costs. He is also concerned that rising gas prices could push up the cost of nitrogen fertilisers, and that their availability may be uncertain.