Lower excise duties mean Lithuanian truckers filling up at Estonia gas stations
Lithuanian long-haul truck drivers have taken to refueling in Estonia, due to diesel excise duties being significantly lower in the northernmost Baltic state at present.
Whereas Estonian drivers once tried to refuel across the southern border whenever possible, where fuel was cheaper, the situation is now the reverse.
"Diesel excise duty in Estonia is the lowest in the Baltics. The difference with Latvia is just a few cents, but with Lithuania it's as much as 10 cents lower, exclusive of VAT. If we also take into account the fuel price war that began in September, the gap is very wide," Alan Vaht, board member at gas station chain Terminal, told "Aktuaalne kaamera."
The result is Estonia is now the preferred refueling spot for long-haul drivers in the Baltics; at certain points in the past Latvia or Lithuania had held that honor.
"There has been a sharp increase in cars with Lithuanian license plates refueling in Estonia. If we look at total diesel consumption, it has been either stable or slightly declining on the domestic market, but thanks to Lithuania's higher excise tax — since fuel is more expensive there — refueling by Lithuanian transport operators in Estonia has risen sharply this year," said Tarmo Kärsna, head of business development at fuel retailer Alexela.
This has had its effect on sales, too.
"Over the past four years, diesel fuel sales in Estonia have increased by ten percent. If I compare August — that is, eight months total — with last year, growth has been two percent," Vaht noted.
Even in Estonia, fuel excise taxes are set to rise both in 2026 and 2027, though they should still remain lower than those of the neighboring countries to the immediate south.
The rate rise is also set and known about in advance.
"In Estonia, it is currently fixed that excise taxes will rise by about five cents each year. There are no big surprises there. Lithuania has already implemented its price increase," Kärsna said.
"When excise duty rises in Estonia next year, it will also rise in Latvia and Lithuania, but will still remain one cent lower in Estonia than in Latvia. At present, it is two cents cheaper, and, compared with Lithuania, the price difference will grow to as much as 14 cents, exclusive of VAT. By 2027, our rate will rise, Lithuania's will rise, so the difference will remain 14 cents excluding VAT," Vaht outlined.
Luminor Pank chief economist Lenno Uusküla said the price advantage in favor of Estonia may not last over the longer term, however.
"In the longer term, excise tax rates are likely to converge. Lithuania is also rethinking its tax policy and considering how to collect taxes more effectively. Tax changes are certainly expected in Lithuania in the coming years as well. Our own tax plans should be viewed in that light. It is too early to tell where Lithuania is heading, but they have a new government, and they're reviewing the country's tax system as a whole," Uusküla noted.
The diesel fuel excise duty was hiked in May this year, from €0.399 to €0.428 per liter. The current excise duty on diesel in Lithuania is €0.520 per liter, according to data from August 2025.
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Editor: Andrew Whyte, Johanna Alvin
Source: 'Aktuaalne kaamera'
