European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure EE-2022-19/2911 Updated – measures in Estonia

Cut in excise duty rates of special purpose diesel fuel

Eriotstarbelise diislikütuse aktsiisimäära alandamine

Country Estonia , applies nationwide
Time period Temporary, 01 May 2022 – 31 December 2023
Context War in Ukraine
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Support for fuel expenses
Author Ingel Kadarik (Praxis Center for Policy Studies) and Eurofound
Measure added 15 September 2022 (updated 01 April 2023)

Background information

The price of the special purpose diesel fuel has increased by 85%. To mitigate the effects such a high increase in energy prices are causing, the Parliament approved changes of the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act on 18 May 2022 reducing the excise duty rate of diesel fuel for specific purposes.

Content of measure

Between 1 May and 31 December 2022 the excise duty rate for special purpose diesel fuel is set to €21 per 1,000 liters. This is the lowest rate allowed in the European Union. Previously, the excise rate for the fuel was €100 per 1,000 liters.

The special purpose diesel fuel is allowed to be used in agriculture. In addition, temporarily between 1 July 2020 and 30 April 2023, it is also allowed to be used in oil shale industry for mining and transport. It can also be used in commercial fishing, although in most cases the use of fuel in this field is exempt from excise duty.


The following updates to this measure have been made after it came into effect.

29 September 2022

At the end of 2021, a law was passed, which provided for a four-year gradual restoration of fuel and electricity excise duties to the pre-crisis level, starting from May 1, 2023. The changed security situation in Europe has led to a sharp increase in the price of energy carriers.A new bill was signed to postpone excise duty increases by one year and the pre-crisis level of excise duty rates will be reached in 2027.

Use of measure

It is expected that the wholesale price of the special purpose diesel fuel could decrease by 9.48 cents per liter (nearly 7%).

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A


No information available.

Views and reactions

The Central Union of Estonian Farmers and the Estonian Chamber of Agriculture and Commerce have expressed their concerns regarding the excise duty rate already in 2021 and thus they are supportive of the temporary reduction of the excise rate.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      A - Agriculture, Forestry And Fishing A1 Crop and animal production, hunting and related service activities
      A2 Forestry and logging
      A3 Fishing and aquaculture
      B - Mining And Quarrying B6 Extraction of crude petroleum and natural gas

This case is not occupation-specific.


  • 26 April 2021: Põllumehed: Põllumajanduskütuse aktsiisisoodustusega tuleb kindlasti jätkata (Farmers: The excise discount on agricultural fuel must definitely be continued) (
  • 02 May 2022: Seaduseelnõu seletuskiri (Explanatory note of the draft legislation) (
  • 22 May 2022: Alkoholi-, tubaka-, kütuse- ja elektriaktsiisi seaduse ning alkoholi-, tubaka-, kütuse- ja elektriaktsiisi seaduse muutmise seaduse muutmise seadus (Act amending the Alcohol, Tobacco, Fuel and Electricity Excise Act and the Alcohol, Tobacco, Fuel and Electricity Excise Act Amendment Act) (


Eurofound (2022), Cut in excise duty rates of special purpose diesel fuel, measure EE-2022-19/2911 (measures in Estonia), EU PolicyWatch, Dublin,


Eurofound publications based on EU PolicyWatch

30 January 2023


Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.


12 September 2022


First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.


12 September 2022


Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.


5 July 2022


Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.


Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.