The conflict in Iran has significantly raised the prices of oil and diesel, pushing up overall costs in various sectors. Starting from May 1, an increase in diesel fuel excise duty is expected to exacerbate this situation, with implications for the pricing of consumer goods.

Urmas Uudemets, the head of Via 3L, the largest logistics company in the Baltic States, has highlighted that the rising oil and gas prices are likely to drive costs up in production and transportation. He warns that consumers may begin to notice a hike in prices for most products and services within a few months as a direct result of these increases. While he suggests that canceling the excise hike could provide some relief, it appears the government is resolute in not considering this option.

The impact of the Iranian conflict on fuel prices is compounded by existing instability in the Middle East, meaning consumers may not need the complete shutdown of the Strait of Hormuz to feel the effects. The government's stance on the excise duty reinforces the notion that significant changes are coming for Estonian consumers, who are already facing higher prices due to external geopolitical factors.