As part of broader tax hikes, Estonia will raise excise duties on fuel and electricity starting May 1, 2025. The adjustments will impact various energy sources, including gas, diesel, heating oil, and electricity, affecting both households and businesses.
Key changes include:
- Diesel and light fuel oil excise duty will rise from €399 to €428 per 1,000 liters.
- LPG (liquefied petroleum gas) excise duty will increase from €65.01 to €79.91 per 1,000 kg.
- Natural gas excise duty will go up from €47.81 to €56.42 per 1,000 m³.
- Electricity excise duty will rise from €1.45 to €2.10 per MWh.
Additionally, gasoline excise duty, which has remained unchanged since 2018, will increase by 5% annually over the next four years, with the first rise taking effect on July 1, 2025. Combined with the VAT hike, this will add 6.3 cents per litre to fuel prices.
Excise duties will continue to rise, further increasing energy and fuel costs in the long term. Businesses and consumers should prepare for ongoing price hikes affecting transport, heating, and electricity expenses.
Originally published 28 March 2025
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