Lithuanian transport sector faces 2029 fuel mandate and rising costs

The Lithuanian public transport sector faces significant upcoming regulatory changes. Under the current Law on Alternative Fuels, all public passenger transport vehicles must utilize alternative fuels starting January 1, 2029. Despite discussions regarding a potential delay to 2032, official state planning documents and legal frameworks maintain the 2029 deadline, with additional legislative updates planned to facilitate this transition.

Simultaneously, the broader European and Lithuanian transport and logistics sectors are grappling with rising operational costs and sustainability pressures. According to the ‘DKV Mobility eMobility Study 2026’, 76% of surveyed companies identify rising costs as a primary challenge, while 73% feel pressure to meet sustainability goals. In Lithuania, labor costs have been a major driver of expenditure, with freight transport employee costs increasing by an average of 20% annually between 2020 and 2024.