Fuel union chief: competition authority letter to fuel retailers came as a surprise

A recommendation from the Competition Authority to fuel retailers to avoid public comments on fuel price changes has caused confusion. Krista-Maria Alas, executive director of the Estonian Association of Transport Fuels, said the letter came as a complete surprise to market participants. The sector currently lacks clarity on what exactly can and cannot be said publicly.

A recent letter from the Competition Authority to fuel retailers has caused confusion and uncertainty in Estonia's fuel sector. The authority recommended retailers avoid public comments on fuel price changes, but market participants do not understand exactly what this means in practice.

Krista-Maria Alas, executive director of the Estonian Association of Transport Fuels, said the authority's letter came as a complete surprise to the sector. "The letter came like a bolt from the blue," said Alas. The association currently lacks clarity on what public comments it may make in the future and which ones could prove problematic.

The Competition Authority's recommendation primarily concerns situations where fuel retailers publicly announce upcoming price changes. Such public announcements could, in the authority's assessment, harm free competition, as they give market participants an opportunity to coordinate prices.

For fuel retailers, the new situation creates practical problems. Until now, price announcements have been a standard business practice through which consumers were informed of changes. However, the sector now faces a situation where there is no clarity on which forms of communication are permitted.