Background information

Due to developments in the Middle East and resulting disruptions in global energy markets, rising energy prices created a fragile economic environment. Although no precise estimates of the economic impact were available, the Minister of Finance and the Prime Minister highlighted a weakening economic outlook. As a result, planned increases in excise duty rates on motor fuels, heating oils, natural gas and electricity, scheduled for 1 May 2026, were cancelled. This was expected to limit additional cost pressures, contain inflation and support business competitiveness. The legal reference for the bill is the following: Act on the Amendment of the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act and Other Acts (RT I 14.12.2021, 1) and the Act on the Amendment of the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act and Other Acts (RT I, 02.01.2025, 1) (Cancellation of excise duty increases planned for 1 May 2026) 857 SE

Content of measure

The government considered measures to reduce pressure from rising energy prices and decided to cancel the planned increase in excise duty rates on energy carriers scheduled to enter into force on 1 May. The bill cancels the planned increases in excise rates for motor fuels, i.e. gasoline and diesel fuel; heating oils, natural gas and electricity. There is no other eligibility criteria.

The government also agreed to participate in an initiative of the International Energy Agency (IEA) aimed at stabilising fuel markets. Estonia's contribution as an IEA member state would be approximately 34,000 tonnes of oil equivalent.

There was no monetary support provided.

Use of measure

Not applicable to this measure.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	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	No involvement as case not in social partner domain	No involvement as case not in social partner domain
Form	Not applicable	Not applicable

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

• No involvement
• Main level of involvement: N/A

Involvement

Social partners were not involved.

Views and reactions

Social partners have not expressed views or reactions.

Sectors and occupations

This case is not occupation-specific.

Sources

• 12 March 2026: Government press release on the cancellation (valitsus.ee)
• 19 April 2026: Government Bill and drafts (www.riigikogu.ee)