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Stocks release procedure

In the event of delivery difficulties the Government of the Republic will decide on the usage of stocks on the basis of a proposal of the Minister of Economic Affairs.

In the event of difficulties in supply, the stock manager makes an offer of sale to the sellers of fuel. An offer to sell jet fuel is made to the persons who are payers of the stockpiling fee of this fuel. The quantity of the fuel offered for sale is to be proportionate to the market share of those persons, and the calculation of the market share is based on the quantity of fuel which those persons have released for consumption during the four preceding quarters, or, in the case of jet fuel, on the quantity of fuel which those persons have sold. A seller of fuel is a person who holds a registration for the sale of fuel within the meaning of the Liquid Fuel Act and in whose respect the register contains a note, made under subsection 2 of section 13 of the same Act, which permits the person to release fuel for consumption.

Where no seller of fuel or no payer of the stockpiling fee for jet fuel wishes to purchase the quantities of fuel offered for sale, the stock manager may make an offer to sell the fuel to other legal persons. In the cases specified in subsections 4 and 6 of section 7 of this Act, the stock manager may make an offer on the international fuel market to sell a quantity of fuel that complies with the recommendations of the European Commission or the International Energy Agency.

For the purpose of avoiding loss upon the sale of fuel, the Liquid Fuel Stocks Act provides that the stockholder has the right to sell stocks only at the market price, which shall not be lower than the weighted average acquisition cost of the relevant type of oil. Sale at a price lower than the acquisition cost is only permitted with the authorisation of the Minister of Economic Affairs and Communications.

The usage of oil stocks in Estonia is regulated by Liquid Fuel Stocks Act and on the basis of it regulation: The principles of operation of the oil stockholder and the procedure for the sale of the stocks to be offered for sale by the stockholder in the event of difficulties in supply.