Liquid Fuel Stocks Act¹

(1) This Act provides the basis for the establishment, maintenance and management of compulsory liquid fuel stocks.

(2) Liquid fuel stocks (hereinafter, ‘the stocks’) means the quantities of petroleum products determined by this Act which are at the disposal or under the control of the government, which are established in order to ensure national security and subsistence of the population, to perform obligations assumed under international agreements relating to the supply of energy and fuel, and to prevent adverse effects on economic activities or to mitigate the adverse effects in the event of irregularities in the supply of petroleum products (hereinafter, ‘difficulties in supply’).

(1) Stocks are established of the following types of liquid fuel (hereinafter, ‘fuel’) grouped into three categories

1) stock category I shall include motor vehicle petrol, aviation spirit, spirit type jet fuel;

2) stock category II shall include diesel fuel, light heating oil, kerosene and jet fuel (aviation kerosene);

3) stock category III shall include heavy fuel oil.

(2) For the purposes of this Act

1) motor vehicle petrol shall mean fuel for which the first eight digits of the combined nomenclature of goods (hereinafter, ‘CN’) code established by Council Regulation 2658/87/EEC on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 256, 07.09.1987, pp. 1–675) are either 2710 11 41, 2710 11 45 or 2710 11 49;

2) aviation spirit shall mean fuel for which the first eight digits of the CN code are 2710 11 31;

3) spirit type jet fuel shall mean fuel for which the first eight digits of the CN code are 2710 11 70;

4) diesel fuel shall mean fuel for which the first eight digits of the CN code are either 2710 19 29 or 2710 19 41;

5) light heating oil shall mean fuel for which the first eight digits of the CN code are 2710 19 45;

6) kerosene shall mean fuel for which the first eight digits of the CN code are 2710 19 25;

7) jet fuel shall mean fuel for which the first eight digits of the CN code are 2710 19 21;

8) heavy fuel oil shall mean fuel for which the first eight digits of the CN code are 2710 19 61 (except for shale oil).

(1) Stocks in each category specified in section 2(1) of this Act shall be maintained at all times at a level corresponding to at least the average amount consumed during a period of 90 days based on the total amount of domestic consumption in the corresponding category during the preceding calendar year.

(2) In stock category I, a stock of motor vehicle petrol may be maintained i nstead of other types of fuel, taking account of the total average domestic consumption in stock category I during the preceding calendar year.

(3) In stock category II, except for jet fuel, a stock of diesel fuel may be maintained instead of other types of fuel, taking account of the total average domestic consumption of diesel fuel, light heating oil and kerosene during the preceding calendar year. The stock of jet fuel is maintained as a separate stock within stock category II.

(4) Stocks specified in subsection 1 of this section must be stored in Estonia in an amount that corresponds at least to the average amount consumed during 15 days based on the total volume of domestic consumption in the corresponding category during the preceding calendar year.

(5) Amounts of fuel consumed from bunker supplies on board of sea-going vessels are not counted as domestic use.

Stocks are established and held by a government-owned company (hereinafter, ‘the stock manager’) within the meaning of the State Assets Act.

(1) Stocks shall be maintained in a manner which ensures the availability of the stocks in the event of difficulties in supply.

(2) The stock manager may maintain the stocks in Estonia or another Member State of the European Union (hereinafter the Member State). Stocks shall be stored in fixed containers rated for the storage of fuels.

(3) The stock manager may maintain the stocks itself or transfer the stocks for storage to a company or other legal person pursuant to a deposit contract concluded with the company or other legal person.

(4) The deposit contract shall stipulate the following

1) the conditions of and procedure for maintaining the stocks in order to ensure control over and availability of the stocks;

2) the procedure for inspecting the stocks;

3) a requirement according to which the contract may not be unilaterally terminated in the event of difficulties in supply;

4) a requirement for the person maintaining the stocks to insure the stocks maintained.

(5) The stock manager shall renew the stocks by way of rotation and ensure the existence of the required amount of fuel and conformity of the fuel to the established requirements at all times.

(6) In order to fulfil its obligation of maintaining the stocks, the stock manager may enter into an agreement whereby a company or other legal person assumes the obligation of maintaining the stocks and the stock manager acquires the right to buy the stocks covered by the agreement (hereinafter, ‘the delegated stocks’).

(7) The agreement for delegated stocks shall stipulate the following

1) the right of the stock manager to purchase the stocks at any time during the entire term of the agreement, noting that in the event of a purchase of the stock, the availability of the stock should be ensured;

2) the rules governing the determination of the price payable for the stocks in the event of their purchase;

3) the location of the stocks;

4) the term of the agreement, which must be at least 90 days.

(8) The total amount of delegated stocks must not exceed 20 percent of the amount of the stocks provided in section 3(1) of this Act. This restriction on the amount of delegated stocks shall not apply during the period of establishment of the stocks, in the case an agreement for delegated stocks is entered into for renewal of the stocks in order to ensure conformity thereof to the established requirements, and in the case that the obligation of maintaining a stock of one type of fuel is less than 20,000 tons.

(9) Not later than on 31 March of each calendar year, the stock manager shall recalculate the amounts of stocks required under section 3(1) of this Act in order to bring such amounts into conformity with the amount of domestic consumption for the preceding calendar year, and ensure availability of the adjusted amount not later than on 31 July of the same year.

(10) An official authorised by the Minister of Economic Affairs and Communications is entitled at any time to check the existence, maintenance and renewal of the stocks and compliance of the stocks with the established quality requirements.

(1) The maintenance of stocks in a Member State shall be governed by an international treaty and a deposit contract or agreement for delegated stocks, entered into on the basis of the international treaty.

(2) An international treaty entered into between governments must

1) cover all the fuels listed in section 2 of this Act;

2) include a covenant that the parties will not hinder transportation of the stocks covered by the treaty from their territories pursuant to instructions provided by the other party;

3) stipulate the conditions of and procedure for maintaining the stocks in order to ensure control over and availability of the stocks;

4) stipulate a procedure for inspection of the stocks and the methods of cooperation in the case of inspection of the stocks;

5) be entered into for an unspecified term;

6) contain a requirement that the treaty may not be unilaterally terminated in the event of difficulties in supply.

(3) The text of the international treaty shall be submitted, prior to signature, to the European Commission who is entitled to make recommendations. When the treaty has been signed, this is notified to the European Commission. Notification of the European Commission shall be arranged by the Ministry of Economic Affairs and Communications.

(1) The stocks are to be used in the event of difficulties in supply.

(2) In the event of difficulties in supply, the use of the stocks shall be decided by the Government of the Republic at the proposal of the Minister of Economic Affairs and Communications which has been approved beforehand by the crisis management committee of the Government of the Republic.

(3) The resolution of the Government of the Republic shall set out the following

1) the reason for use of the stocks;

2) the estimated duration of the period of difficulties in supply during which the stocks are to be used;

3) the conditions for use of the stocks and any necessary restrictions;

4) the activities necessary for replenishment of the stocks;

5) the amount of the stocks to be used.

(4) The Ministry of Economic Affairs and Communications shall inform the European Commission of the decision of the Government of the Republic and if necessary, submit a request to call a conference of the Member States.

(5) In the event of difficulties in supply, the Government of the Republic has the right to

1) establish restrictions on the sale of fuel;

1¹) prohibit the transportation of fuel out of the country for commercial purposes;

2) establish general or specific restrictions on consumption of fuel;

3) give preference, upon establishment of restrictions, to the undertakings who ensure the functioning of vital services within the meaning of the State of Emergency Act;

4) regulate fuel prices in order to prevent unusual price increases;

5) authorise the stock manager to sell the fuel maintained as the stocks;

6) authorise importers of fuel to use and sell the stocks provided by section 23(8) of this Act stored by the importers.

(6) The principles of operation of the stock manager and the procedure for the sale of the stocks to be offered for sale to the persons specified in subsection 7 of this section by the stock manager in the event of difficulties in supply shall be established by a regulation of the Minister of Economic Affairs and Communications.

(7) In the event of difficulties in supply, the stock manager shall make an offer of sale to the persons who hold a registration for the sale of fuel within the meaning of the Liquid Fuel Act and who have five or more filling stations registered as their place of business. An offer for the sale of aviation kerosene, aviation spirit and spirit type jet fuel shall be made to the persons who are payers of the stockpiling fee of the corresponding type of fuel. The amounts of fuel offered for sale shall be equal to the market share of the persons described above and shall be calculated on the basis of the quantities of fuel sold by such persons during the four preceding quarters. An offer for sale of heavy fuel oil shall be made to the persons who use that fuel for the production of thermal energy. The quantity of heavy fuel oil offered for sale shall be equal to the quantity of heavy fuel oil used by those persons during the twelve preceding months.

(8) If no person who received an offer of sale specified in subsection 7 of this section wishes to buy the amount of fuel offered, the stock manager shall have the right to make an offer of sale to other legal persons.

(9) Upon a demand by the stock manager, the persons specified in subsection 7 of this section are required to submit the information necessary for adherence to the procedure for the sale of the stocks.

(10) The stocks shall be replenished pursuant to a timetable proposed by the Minister of Economic Affairs and Communications and approved by a resolution of the Government of the Republic.

(1) Purchases of stocks shall be covered from the national budget by increasing the share capital of the stock manager and by using funds received from the sale of stocks.

(2) The costs of managing the stocks shall be covered out of the stockpiling fee paid by payers of that fee. A payer of the stockpiling fee is the payer of the excise duty as specified in section 22(1) of the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act. In the absence of a payer of the excise duty, the payer of the stockpiling fee is the person who releases fuel for consumption. A person who supplies aviation kerosene, aviation spirit or spirit type jet fuel (hereinafter, ‘aircraft fuel’) to an aircraft refuelled in Estonia shall also be deemed a payer of the stockpiling fee.

(3) An importer is a person on whose behalf fuel has been placed on the market in Estonia or on whose behalf fuel has been brought from a Member State into Estonia without an excise suspension arrangement within the meaning of the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act.

(4) The costs of managing the stocks are

1) costs related to maintenance of the stocks;

2) costs related to insurance of the stocks;

3) costs related to verifying the amounts of the stocks and their conformity to established requirements;

4) operating costs of the stock manager;

5) financing costs of the stock manager;

6) other costs related to fulfilling the obligation, established by this Act, to maintain the stocks, except the cost of purchases of stocks.

(1) The stockpiling fee is a fee paid by payers of that fee to cover the costs of managing the stocks.

(2) The obligation to pay the stockpiling fee arises upon release for consumption of a fuel included in the list provided in section 2 of this Act or upon the transportation of such fuel from another Member State into Estonia without an excise suspension arrangement within the meaning of the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act, or upon the dispatch of fuel from an excise or customs warehouse for refuelling an aircraft in the case of aircraft fuel or in other cases of transfer of aircraft fuel.

(2¹) The stockpiling fee shall be refunded to the person who dispatched to another Member State an amount of fuel released for consumption in Estonia, provided

1) the stock manager has been informed of the intention to dispatch the fuel released for consumption in Estonia to another Member State before the dispatch of the fuel;

2) an application for refund of the stockpiling fee has been submitted to the stock manager before dispatching the fuel to another Member State;

3) the stock manager has received a shipment document for the fuel which bears a confirmation of receipt of the fuel by the recipient of the fuel.

(2²) In addition to the information and documents specified in subsection 21 of this section, the stock manager is entitled to request other relevant information and documents which are necessary for refunding the stockpiling fee.

(2³) The stockpiling fee is refunded to the bank account of the payer of the fee within one month of receipt of the application.

(3) The stockpiling fee shall be paid into the bank account of the stock manager without prior demand for payment not later than the fifteenth day of each month in an amount which corresponds to the amount of fuel released for consumption by the payer of the stockpiling fee during the previous calendar month, and to the current rate of the stockpiling fee. The explanation of the payment order must state “stockpiling fee” and the name of the calendar month for which the stockpiling fee is paid.

(4) Calculation of the amount of the stockpiling fee based on the volume of fuel shall be based on the volume of the fuel at 15°C.

(5) If a payer of the stockpiling fee fails to pay the stockpiling fee by the due date provided in subsection 3 of this section, the stock manager is entitled to demand the payment of late interest on the amount owed. The rate of the late interest is 0.06 percent per day.

(6) [Repealed – RT I 2006, 43, 325 – entry into force 01.12.2006]

(7) Where necessary, the stock manager is entitled to request a relevant security in order to secure payment of the stockpiling fee. The existence of a security must be proved by a guarantee document issued by a credit or financial institution or an insurer, or by the deposition of a sum of money in the bank account of the stock manager.

(1) The rate of the stockpiling fee shall be established by the Minister of Economic Affairs and Communications on the basis of a proposal by the stock manager subject to the minimum and maximum rate of the fee provided in this section. The rate of the stockpiling fee, expressed as an amount of euros per 1000 litres of fuel in the case of fuels in stock categories I and II and as an amount of euros per 1000 kilograms of fuel in the case of fuels in stock category III, is established for the calendar year in respect of each stock category specified in section 2(1) of this Act at least one month before the beginning of that calendar year.

(1¹) In stock category II, a separate rate of the stockpiling fee may be established for separate stocks of aviation kerosene maintained as aircraft fuel.

(2) The rate of the stockpiling fee shall be based on estimated costs of the management during the next calendar year of stocks which meet the requirements of sections 3(1) and 23(1) of this Act, and on the estimated volume of fuel to be placed on the market during the next calendar year.

(3) The rate of the stockpiling fee may be adjusted once in a calendar year in accordance with the costs incurred. The rate shall be adjusted if this is necessary to cover the costs of managing the stocks. An adjustment of the stockpiling fee shall take effect as of the beginning of the second month after it is passed.

(4) If the total amount of the stockpiling fee paid within a calendar year exceeds the actual costs of managing the stocks in that calendar year, the amount received in excess of the costs shall be taken into account at the next setting of the rate of the stockpiling fee.

(5) The rate of the stockpiling fee shall be published on the website of the stock manager without delay. The website of the stock manager shall also show the number of the bank account of the stock manager.

(6) The minimum and maximum rate of the stockpiling fee are linked to the costs of holding an amount of stocks corresponding to one day’s stocks, expressed as an amount of euros per 1000 litres of fuel in the case of fuels in stock categories I and II, and expressed as an amount of euros per 1000 kilograms of fuel in the case of fuels in stock category III.

(7) In stock categories I and II, the minimum rate of the stockpiling fee corresponding to one day’s stocks shall be 0.026 euros and the maximum rate shall be 0.16 euros per 1000 litres of fuel. In the case of a separate rate of the stockpiling fee being established for aviation kerosene maintained as aircraft fuel in stock category II, the minimum rate of the fee corresponding to one day’s stocks shall be 0.026 euros and the maximum rate 0.19 euros per 1000 litres of fuel.

(8) In stock category III, the minimum rate of the stockpiling fee corresponding to one day’s stocks shall be 0.064 euros and the maximum rate 0.256 euros per 1000 kilograms of fuel.

(1) The stock manager shall prepare and submit to the Ministry of Economic Affairs and Communications and the European Commission a statistical summary concerning the existing stocks as of the end of each month no later than by the twenty-fifth day of the second month following the month of reporting and indicate, on the basis of the average daily amount of domestic consumption for the previous year, the number of days to which such stocks correspond.

(2) The statistical summary shall be prepared in respect of each stock category specified in section 2(1) of this Act, setting out separately the amount of the stock of aviation kerosene.

(3) In statistical summaries, the amount of stocks shall be calculated according to the actual tonnage of fuel.

(4) Together with the statistical summary, the European Commission shall be presented with information on fuel stored according to international agreements within the territory of Estonia as member state stock and on fuel stored in other member states as stocks of the Republic of Estonia. The amount of the stocks, the place of storage and the name of the company or other legal person who stores the stocks shall be set out for both categories of information.

(1) In order to verify payment of the stockpiling fee, the Tax and Customs Board shall, by the last day of every month, submit to the stock manager information on the quantities of fuel released for consumption during the previous calendar month as well as the quantities of fuel dispatched for the refuelling of aircraft in Estonia.

(2) The information specified in subsection 1 of this section shall be submitted by CN code specified in section 2(2) of this Act separately for each payer of the stockpiling fee.

(3) The stock manager is entitled to obtain information from the Tax and Customs Board in order to determine the market share of the persons specified in section 7(7) of this Act and to ensure preparedness for commencement of use of stocks.

The articles of association of the stock manager shall set out the duties of the stock manager’s management board and supervisory board in arrangingng the establishment and management of the stocks.

(1) The supervisory board of the stock manager (hereinafter, the supervisory board) is required to convene an audit committee within the meaning of the Participation by the Government in Legal Persons in Private Law Act.

(2) No claim may be enforced against stocks and stocks may not be used as security. If the assets of the stock manager are insufficient to cover the costs of fulfilling its obligations, the government assumes responsibility for fulfilling such obligations.

(3) The stock manager may import and sell fuel without registration within the meaning of the Liquid Fuel Act.

(4) The supervisory board shall consist of an even number of members, one half of whom shall be appointed from among the candidates presented by the persons specified in section 7(7) of this Act (hereinafter, ‘the sellers of fuel’) and the other half shall consist of representatives of the government. The supervisory board must have at least four members.

(5) One half of the members of the supervisory board from among the candidates presented by the sellers of fuel shall be appointed and recalled by the Minister of Economic Affairs and Communications and the other half by the Minister of Finance. If an odd number of persons are appointed as members of the supervisory board from among the candidates presented by the sellers of fuel, the Minister of Finance shall appoint an additional member. The persons to be presented as candidates for membership of the supervisory board by the sellers of fuel or the persons whom they wish to recall from the supervisory board shall be selected by the trade association of the sellers of fuel. The trade association of the sellers of fuel shall submit a corresponding proposal to the Minister of Economic Affairs and Communications and to the Minister of Finance simultaneously.

(6) [Repealed – RT I 2006, 43, 325 – entry into force 01.12.2006]

(7) If the trade associations of the sellers of fuel fail to submit any candidates for membership of the supervisory board or submit fewer candidates than the number prescribed, the Minister of Economic Affairs and Communications and the Minister of Finance shall have the obligation, as representatives of the government, to appoint members to the unfilled seats in the supervisory board.

(8) One half of the members representing the government shall be appointed and recalled by the Minister of Economic Affairs and Communications and the other half by the Minister of Finance. If the government is represented by an odd number of supervisory board members, the Minister of Economic Affairs and Communications shall appoint an additional member.

(9) The chairman of the supervisory board shall be elected from among the members of the supervisory board.

(10) The provisions of the Participation by the Government in Legal Persons in Private Law Act, with the exception of the provisions of ss. 18, 19(3), 19(7), 20, 22(1)(1‑2) and 22(2‑3), apply to the members of the supervisory board representing the sellers of fuel.

The stock manager is required to insure the stocks.

(1) Procurements resulting in contracts related to establishment and maintenance of stocks shall be deemed to be procurements related to protecting essential interests of the government within the meaning of section 4(1)(2) of the Public Procurements Act.

(2) The Minister of Economic Affairs and Communications shall establish principles for organisation of procurements for establishment and maintenance of the stocks. The Minister of Economic Affairs and Communications shall establish general terms and conditions of contracts for the purchase, sale or maintenance of fuel, or delegation of stocks, and the supervisory board shall establish special terms and conditions upon a proposal of the management board.

(1) The stock manager has the right to sell stock only at a price which is equal to the market price, but which may not be lower than the weighted average acquisition cost of the relevant type of fuel. Sale at a price lower than the acquisition cost is only permitted upon authorisation of the Minister of Economic Affairs and Communications.

(2) The stock manager is entitled to sell a stock if, during three consecutive years, the existing amount of the stock exceeds the amount of stock meeting the requirements of section 3(1) of this Act by five percent. Only an amount of the s tock that exceeds the mandatory amount of the stock by more than five percent may be sold. In the event of difficulties in supply, a sale is not allowed.

(1) The stock manager is required to analyse the fuel supply situation in the country together with the sellers of fuel and, in the event of difficulties in supply, immediately to inform the Minister of Economic Affairs and Communications thereof.

(2) Sellers of fuel are required to provide information needed for the analysis specified in subsection 1 of this section when requested by the stock manager.

The stock manager is entitled to obtain, from the Tax and Customs Board, information required in order to fulfil the duties arising from this Act.

(1) Unauthorised use of a liquid fuel stock is punishable by a fine of up to 300 fine units.

(2) The same act, when committed by a legal person, is punishable by a fine of up to 3200 euros.

(1) Failure to pay a stockpiling fee by the due date is punishable by a fine of up to 300 fine units.

(2) The same act, when committed by a legal person, is punishable by a fine of up to 3200 euros.

(1) Failure to submit information on liquid fuel stocks or information necessary for compiling an analysis of the fuel supply situation, or submission of false information is punishable by a fine of up to 200 fine units.

(2) The same act, when committed by a legal person, is punishable by a fine of up to 2000 euros.

(1) The provisions of the General Part of the Penal Code and the Code of Misdemeanour Procedure apply to the misdemeanours created by ss. 20, 201 and 21 of this Act.

(2) Extra-judicial proceedings concerning the misdemeanours created by ss. 20, 201 and 21 of this Act shall be conducted by the Ministry of Economic Affairs and Communications.

(1) The stocks in each stock category specified in section 2(1) of this Act shall be maintained, at all times, at a level which equals

1) after the entry into force of this Act, to at least the average volume consumed during a period of 20 days based on the total amount of domestic consumption in the corresponding category during the preceding calendar year;

2) after 1 January 2006, to the average amount consumed during a period of 35 days based on the total volume of domestic consumption in the corresponding category during the preceding calendar year;

3) after 1 January 2007, to the average volume consumed during a period of 45 days based on the total volume of domestic consumption in the corresponding category during the preceding calendar year;

4) after 1 January 2008, to the average volume consumed during a period of 50 days based on the total volume of domestic consumption in the corresponding category during the preceding calendar year;

5) after 1 January 2009, to the average volume consumed during a period of 65 days based on the total volume of domestic consumption in the corresponding category during the preceding calendar year.

(2) A s of 1 January 2010, stocks shall be maintained at the level provided in section 3(1) of this Act.

(3) The Government of the Republic shall establish the company specified in section 4 within at least one month after the entry into force of this Act.

(4) Until the establishment of the company specified in § 4 of this Act, the Ministry of Economic Affairs and Communications shall act as the body managing the stocks and the manager of government assets with the plenitude of rights and obligations arising from the law.

(5) At the time of establishment of the company, the fuel purchased by the Ministry of Economic Affairs and Communications pursuant to the Minimum Stocks of Liquid Fuel Act before the entry into force of this Act shall be transferred to the share capital of the company as a non-monetary contribution.

(6) The stock manager shall reimburse to the government the costs incurred by the Ministry of Economic Affairs and Communications in relation to managing the stocks in 2005.

(7) The costs incurred by the Ministry of Economic Affairs and Communications in relation to managing the stocks in 2005 until the time the body to manage the stocks is established shall be reimbursed from the reserve fund of the Government of the Republic.

(8) Until 1 January 2007, importers are required to maintain 10 days’ stock which shall be calculated on the basis of the average amount of fuel placed on the market on their behalf in Estonia during the previous year. The stocks maintained by the importers shall be regarded as part of the stocks specified in points 1 and 2 of subsection 1 of this section.

(9) Until the date specified in subsection 8 of this section, importers shall, by the fifth day of each month, submit to the stock manager a statistical summary concerning the existing stocks as of the end of the preceding month. The format of statistical summaries shall be established by the Minister of Economic Affairs and Communications.

(10) In order to fulfil their stock maintenance obligation, importers must store the stocks in Estonia.

(11) The rate of the stockpiling fee for 2005 shall be established within two weeks after the entry into force of this Act. The first stockpiling fee payment shall be made not later than the fifteenth day of the month following the entry into force of this Act.

–

[Omitted from this version.]

(1) This Act enters into force on the day following its publication in the Riigi Teataja.

(2) Section 3(4) of this Act enters into force on 1 January 2006.

(3) Section 5(9) of this Act enters into force on 1 January 2010.