Lithuania’s Fuel Excise Hike: Five Months Later
Five months after Lithuania increased fuel excise duties, the results raise more questions than answers. The reform was expected to cut emissions and increase budget revenues. Instead, preliminary data shows falling competitiveness, declining diesel sales, and growing risks for businesses and consumers.
What changed?
- In 2024, Lithuania was among the cheapest EU countries for fuel.
- After the 2025 excise hike, the country slid down the rankings:
- Gasoline: from 6th to 7th place
- Diesel: from 9th to 15th place
- LPG: from 2nd to 8th place
- Meanwhile, in most EU countries fuel prices declined due to external economic and geopolitical factors.
Impact on revenue and business
- Experts warn the government’s €200 million excise revenue target for 2025 is unlikely to be reached.
- In border regions, transport companies are filling up in Poland where fuel is now cheaper, moving tax income out of Lithuania.
- According to the State Tax Inspectorate, diesel sales in Lithuania fell by 15% in Q1 2025 compared to the same period last year.
Why it matters for everyone
Rising fuel prices do not only affect hauliers. Higher logistics costs push up the prices of food, household goods, construction materials, and e-commerce deliveries. This creates inflationary pressure and reduces households’ purchasing power.
Conclusion
The excise hike has eroded competitiveness, shifted tax revenues abroad, and increased economic pressure on both businesses and consumers. Unless tax policy is reassessed with long-term effects in mind, Lithuania risks losing more than just its place in Europe’s fuel price rankings.
Read article here: https://www.delfi.lt/verslo-poziuris/nuomones/edgaras-suchodolskis-degalu-kainos-lietuvoje-kelia-rimtu-klausimu-120118551
