The decision for the release of the stockpile is at the discretion of the government of Estonia based on one of the following:
-
a valid international decision
-
a recommendation by the European Commission
-
circumstances on the domestic fuel market requiring an immediate response
Based on a proposal of the Minister of Climate, the government of Estonia decides the release of the stockpile in the case of supply difficulties.
An advisory committee prepares the proposal of the minister for the release of the stockpile; the committee consists of the members of the supervisory board and the management board of the Estonian Stockpiling Agency and the representatives of various ministries and organisations.
The Estonian Stockpiling Agency makes sales proposals for the sale of the fuel stockpile to fuel sellers based on the decision of the government. The quantity of the fuel offered for sale corresponds to the market share of these companies, calculated based on fuel directed for release by these entities and the quantity of jet fuel sold during the previous four quarters.
A fuel seller in the meaning of the Liquid Fuel Stocks Act is an entity who is registered to sell fuel within the meaning of the Liquid Fuel Stocks Act and whose authorisation contains a note that authorises the entity to release fuel for consumption.
The Estonian Stockpiling Agency may also make a sales proposal to the international fuel market in the extent that complies with the recommendations of the International Energy Agency or the European Commission.
To accept a sales proposal, the recipient of the offer must sign the sales proposal digitally and return it to the stockpile manager by a given deadline through email or signed on paper.
The sale of fuel takes place if the buyer has a guarantee by a credit or financing institution or pays the invoice before transferring the fuel.
If any of the fuel sellers or the payers of the stockpiling fee for jet fuel do not want to buy the quantity of fuel offered for sale, the stockpile manager may offer the stock for sale to other legal persons.
To avoid any losses due to the sale of the stocks, the Liquid Fuel Stocks Act stipulates that the stockpile manager sells the fuel at market price, but no lower than the average weighted acquisition cost of the respective type of fuel. Only the Minister of Economic Affairs and Communications may allow a sale at a price that is below the cost of acquisition.
In the event of difficulties in supply, the government of Estonia is entitled, by directive and for a specified period:
- to establish speed limits on the roads inside and outside built-up areas
- in relation to the sale of fuel, to waive the requirements arising from climatic conditions
- to impose any other measures proposed by an advisory committee to reduce the consumption of liquid fuel
When establishing restrictions, preference may be given to operational services and undertakings which ensure the functioning of vital services within the meaning of the State of Emergency Act.
Last updated: 22.07.2024
