Lithuania Faces Sharp Rise in Gas and Electricity Prices from January

Lithuanian households are bracing for a costly winter: from January, monthly bills for those who heat with natural gas could rise by as much as 32 euros, while electricity prices are forecast to climb by around 20%, exceeding even the level of the 2023 energy crisis. Energy costs are expected to outpace increases in pensions and wages, adding pressure to household budgets. Government support will mainly target the most vulnerable groups.

Gas prices

The main reason is a rise on the international market, where prices have tripled since the start of the year. Lithuania's National Energy Regulatory Council estimates that households will pay about 40% more for natural gas in the first half of next year. Where gas is used mainly for cooking, the bill will rise by roughly one euro, but those heating with gas will face considerably higher costs.

Bills would be higher still had the state-run energy supplier Ignitis not bought half of the country's required gas before the price increase. Energy Minister Lukas Savickas said this has kept prices lower, reducing heating bills by an average of 20 euros for gas users.

The minister explained that the market is open, so events far from Lithuania directly affect local costs. The source cites the US-launched war in Iran and the subsequent closure of the Strait of Hormuz as factors that will affect not only drivers but also households and businesses.

Electricity

From January, the regulated public electricity tariff will rise by about a fifth, to 0.295 euros per kilowatt-hour. Customers eligible for support will pay four cents per kilowatt-hour less. Gas prices are not the only factor: the new tariffs also reflect losses that the use of solar power in electricity generation has caused suppliers.

Heating costs are also set to rise, though the government has promised compensation for eligible households.

Traders already feel the squeeze

Sellers at the market in Utena say customers are weighing their spending carefully, and potatoes remain among the products still selling well. One vendor said customers appear around payday and pension days, but now half of the stalls stand empty. Five years ago the market was full, she said, but some traders can no longer afford to stay.