Estonia will cut fuel reserve fees, but spring tax rise remains possible

Estonia will lower fuel reserve fees by 10 percent next year, reducing pump prices by about 0.25 percent, ERR reported. Finance Minister Jürgen Ligi said he expects fuel excise to rise in the spring, a change already included in the state budget.

The proposed fee reduction was put forward by Eesti Varude Keskus, a state-owned company, and is set out in a decree by Energy and Environment Minister Erkki Keldo. The fees help cover the cost of managing Estonia’s fuel reserves, which the country must maintain to ensure supplies during a crisis or disruption.

Fuel reserve management is expected to cost 5.652 million euros in 2027, while fee revenue is forecast at 5.07 million euros. The remaining 582,000 euros will come from the reserve fee fund, allowing rates to be reduced across all categories of liquid fuel. The forecast assumes fuel consumption will fall slightly in 2027.

The reserve fee is added to the price of fuel per litre or unit of mass, and value-added tax is also charged on it. Ligi said the excise increase was anticipated in the budget, adding that the budget is in deficit. He questioned whether it would be sensible to leave a larger shortfall for the next government.