The Estonian Government confirmed on 3 October 2026 that excise duties on diesel and gasoline will increase on 1 May 2027 under the Fuel Excise Act amendment (RT I, 15.03.2026, 3). Diesel excise rises from €0.493 to €0.542 per litre (+10%), gasoline from €0.623 to €0.685 per litre (+10%). The move contrasts with Germany’s extension of its 2025–2026 excise reduction (diesel -€0.17/l) and Latvia’s temporary 50% cut. The Ministry of Finance cites the need to meet the EU Energy Taxation Directive minimum rates (€0.33/l diesel, €0.359/l petrol) and to fund the Climate Action Programme (€220M/year). The Estonian Road Administration estimates the hike will add €140/year for average diesel car owners and €95 for petrol.
Key Takeaways
- Above EU Minimums: Post-hike rates exceed EU minima by 64% (diesel) and 91% (petrol), reducing competitiveness for cross-border hauliers.
- Revenue Earmarking: Incremental revenue (€48M/year) is legally ring-fenced for green transition projects, not general budget.
- Inflation Pass-Through: Central Bank models predict 0.15 pp CPI impact in H2 2027, complicating ECB convergence criteria.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement