The recent fall in fuel prices in Estonia looks set to peter out, according to a report on the Estonian Press Digest from News2Biz.
Naturally prices at the pumps follow the world oil price, which has fallen from 125 USD (Brent Crude) in March to 90 USD at present, the lowest level for the last 18 months, the report stated.
Statoil, the Norwegian majority state-owned petroleum company which has a network of fuel stations all over Estonia, has seen an 8.9 per cent fall in petrol prices y-o-y and a 10.3 per cent fall in the price of diesel over the same period.
The belief that the fall will halt is not universally shared by analysts, however. According to Raimo Vahtrik from Statoil Fuel & Retail Eesti as reported in the article, some analysts believe that oversupply will continue to cause a fall in prices whereas others see an increase on the back of Chinese and US growth and a solution to the Euro zone woes. Moreover, a rise in consumption of diesel (demand for which is derived to a large extent from commercial users) has been seen, and may be seen in the case of petrol if the prices do in fact fall, Mr. Vahtrik was quoted in the report.
Conversely Anti Moppel, marketing manager of Olerex, an Estonian chain of petrol stations, with 46 both manned and unmanned facilities throughout the country, was reported as saying that continuing low demand and sufficient supply will ensure that prices continue to remain low for the meantime. Other factors contributing to this were, he believed, the continuing global economic slump, tensions in Iran and the arrival of the hurricane season in the Gulf of Mexico.
At the time of writing, 95 petrol was 1.335 Euros/litre at our local Olerex station on Ahtri, whilst it was 1.295 Euros/litre at the Statoil just round the corner on Põhja Pst. 98 petrol cost 1.375 Euros/litre at Olerex and 1.335 Euros/litre at Statoil, whilst diesel stood at 1.295 Euros/litre at Olerex and 1.275 Euros/litre at Statoil
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