Fuel retailers: Drivers are filling up with smaller amounts each visit
Estonian fuel retailer data shows drivers are buying less fuel per visit due to high prices, though they're visiting gas stations more often. Industry representatives warn high prices, especially for diesel, are likely to persist.
Fuel retailer data shows that drivers are buying noticeably smaller amounts of fuel per visit, hoping prices will drop soon. Retailers, however, say the high prices are likely to remain for some time.
So far, high prices have not significantly reduced how much people drive, but drivers are visiting gas stations more frequently while buying less fuel each time. Prices over the past few weeks have been higher than in August, meaning consumers mainly buy smaller amounts at once but fill up more often during the month, said Tarmo Kärsna, head of business development at Alexela.
Raimo Vahtrik, motor fuels sales director at Circle K, explained that spending on fuel in monetary terms has risen because fuel has become more expensive, while consumption in liters is similar to last year or even slightly lower. People are driving with less fuel in the tank, hoping prices will fall again.
High prices expected to persist
Retailers do not currently expect prices to drop quickly. Kärsna noted that high prices should be expected to continue for a longer period, as the conflict is ongoing and has even escalated, while inventories are declining as the heating season approaches. Diesel in particular is a major concern both in Europe and globally due to low inventories.
If high prices persist, the impact will extend beyond drivers' fuel bills — rising diesel prices increase transportation costs, which feed through into the prices of goods and services. Mihkel Nestor, an economic analyst at SEB, warned that high diesel prices could spill over into other areas, and amid eurozone inflation, markets are already speculating the central bank may be forced to raise interest rates again, which would also affect borrowing costs.
Vahtrik added that people typically spend around €50 per fuel purchase, which at today's prices buys about 22 to 23 liters, compared with almost 30 liters during the same period last year, when fuel was considerably cheaper.
