Lithuanian households face an expensive winter ahead. For those using natural gas for heating, monthly bills could rise by as much as 32 euros starting in January, while electricity prices are projected to increase by around 20%—surpassing even the levels seen during the 2023 energy crisis.It is anticipated that the rise in energy costs will outpace increases in pensions and wages, placing an additional burden on household budgets. Government support measures will primarily target the most vulnerable segments of society.At a market in Utena, vendors noted that shoppers are already carefully scrutinizing their spending; potatoes remain one of the items that continue to sell well. One vendor remarked that sellers can tell when people receive their paychecks or pensions, as activity picks up, but the number of shoppers soon drops off again. Another vendor pointed out that business is better in the summer, but currently, half of the stalls are empty. Five years ago, the market was full, but half of the vendors have since been unable to afford to continue trading. As problems in international energy markets spill over into the domestic market, further difficulties are expected. Lithuanian Minister of Energy Lukas Savickas stated that the market is open; consequently, events occurring far away have a direct impact on energy costs in Lithuania as well.A war initiated by the US in Iran—and the subsequent closure of the Strait of Hormuz—would affect not only drivers, who would face higher fuel costs, but also households and businesses. The primary reason for the projected rise in gas prices is an increase in the international market, where prices have tripled since the beginning of the year. The National Energy Regulatory Council of Lithuania estimates that, in the first half of next year, household consumers will pay approximately 40% more for natural gas. For households that use gas primarily for cooking, bills will increase by about one euro. However, those who use gas for heating will face significantly higher costs.Bills would be even higher had the state-owned energy supplier, Ignitis, not purchased half of the country’s required natural gas supply before the price surge occurred. Savicks stated that prices have been kept at a lower level, which has yielded tangible results—simply put, this means heating bills are, on average, 20 euros lower for those using gas.Electricity prices will also rise starting in January. The regulated public electricity tariff is expected to increase by approximately one-fifth, reaching 0.295 euros per kilowatt-hour. Customers who meet the eligibility criteria for support will pay four cents less per kilowatt-hour.
Significant electricity price hikes expected in Lithuania
