Energy, Estonia, Legislation, Oil

According to the measure, the use of diesel fuel for specific purposes will be allowed in the territory of oil shale mines and open pit mines, in mining machinery and equipment, including in mining machinery and machinery used for the transportation of oil shale, ashes and mineral waste from oil shale. The use of such diesel will not be permitted in vehicles on public roads nor by equipment moving by rail, the government's communication office said.

The measure will be valid from July 1 this year until June 30, 2022. 

Under valid law, the rate of the fuel excise duty for diesel from May 1 this year to April 30, 2022 is 372 euros and the rate for diesel fuel carrying a fiscal marker 100 euros per 1,000 liters. From May 1, 2022, the rates will rise to 493 euros and 133 euros per 1,000 liters, respectively.

The are are currently three companies in Estonia that have been issued an oil shale mining permit: Enefit Kaevandused AS, VKG Kaevandused OU and Kivioli Keemiatoostuse OU.

The measure is estimated to cost the state budget approximately 8.5 million euros in foregone excise duty revenue in two years.

The amendment is to take effect from July 1.