On Monday morning in Estonia, a litre of 95-octane gasoline cost more than €1.60 at some stations, but prices kept falling throughout the day, with some selling fuel for just €1.304 per liter.
The shift came after Neste decided to end fuel discounts linked to loyalty cards and instead lowered pump prices for all customers. Competitors followed suit, dropping their prices as well.
Tarmo Kärsna, Alexela's head of business development, told ERR that Estonia's retail fuel market is highly price-sensitive and competitive — when one player changes prices, others usually respond.
"Yesterday's price cut was initiated by Neste, which is part of an international fuel group and controls its entire supply chain from production to retail. That position gives them more flexibility than Estonian companies can afford," Kärsna said.
Indrek Sassi, Circle K's fuel pricing manager, noted that Monday's sales volumes were significantly higher than usual. But at those prices, he said, retailers cannot make a profit.
Full story Estonian gas station chains: We're selling under cost price | News | ERR
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