On 1 Aprill 2011 a new amendment comes into force introducing the obligatory VAT deposit for companies selling fuel. Alexela Oil welcomes Riigikogu’s decision to bring the fuel wholesale and retail market under additional regulatory controls to stop the previously uncontrolled activities of certain fuel handlers involved in tax frauds. According to Ain Kuusik, chairman AS Alexela Oil management board, the most important thing about the Parliament's decision is the introduction of the requirement for companies selling fuel from excise warehouses in to free circulation to pay the deposit of 1 million euro. The deposit will not affect the fuel price at Alexela filling stations. The explanation of how the price is formed is given below.
Kuusik also does not agree with the claim that the deposit aims to drive small filling stations out of business. "Any competition on the market is welcome," says Kuusik. According to Taavi Rõivas, chairman of the parliamentary finance committee, small businesses which have honestly paid their taxes will get a deposit discount.

Taxes paid

Alexela Oil has decided to join the campaign “Honest Fuel”. Starting from March all Alexela filling stations have been displaying stickers confirming to the consumer that Alexela has always done and will keep on doing its business honestly paying the government all the required taxes. As a consumer you can be sure that you buy your fuel from the company that accurately fulfils all its obligations towards the state and the society.

Alexela’s supplier

Alexela values the quality of fuel and services and relies on these criteria when choosing its suppliers. At the moment, Alexela Oil receives all its fuels from Neste Oil Oyj. The fuel is supplied from Neste Oil Oyj Porvoo's refinery.
In 2010 a small amount of fuel was also supplied by Mažeikių Nafta Trading House OÜ.

Fuel price

Consumers often do not understand how the fuel price is formed. The cost of Alexela’s fuel depends on the following factors:

• the price of petrol and diesel on the world market. Here, the cost is determined by the relationship between the supply and demand. The world-market price of petrol and diesel is changing every day. Alexela buys fuel on the basis of quotations of Platt’s European Marketscan.
• the exchange rate of USD and EUR;
• national and local taxes;
• competition on the local fuel market.

Proportionally, the price of fuel can be divided as follows: 45% - production cost (beyond the control of the retailer), 50% - taxes (VAT, excise duty, liquid fuel stocking fee) and approximately 5% - retail markup.