Industry revenue of »retail sale of automotive fuel in specialised stores« in Estonia 2011-2023
In early 2018, the Estonian government passed a resolution, making it mandatory for all liquid fuel retailers to add bio components to petrol and diesel fuel, owing to the growing carbon emissions and health hazardous caused by the use of fossil fuels. Additionally, the government is increasingly promoting the use of biofuels and has set a target of a 10 percent market share for renewable fuels by 2020. This has not augured well the fossil fuel retail sector, with revenues projected to decline from 1.5 billion U.S. dollars in 2012 to 964 million U.S. dollars by 2023. In fact, this trend can be observed in majority of the European countries including Slovakia, Czech Republic, Poland and Latvia to name a few, where the industry is facing an uncertain future.
The outbreak of the corona virus further complicates the situation, as fuel sales have witnessed a 50 percent year over year decline in the country, owing to the restricted movement caused due to the lockdown. One of the largest fuel companies in the country, the Alexela Grupp, has laid-off nearly 10 percent of the workforce, as losses continue to mount.
The outbreak of the corona virus further complicates the situation, as fuel sales have witnessed a 50 percent year over year decline in the country, owing to the restricted movement caused due to the lockdown. One of the largest fuel companies in the country, the Alexela Grupp, has laid-off nearly 10 percent of the workforce, as losses continue to mount.
