Government allocates €4.8 million to maintain public transport

The Estonian government has approved nearly €4.8 million in extra funding to keep current bus, train, ferry and air services running through the end of the year as fuel costs rise, ERR reported.

The money will come from the government’s reserve and cover the impact of higher fuel prices following the escalation of the war in Iran. The 2026 state budget allocated €174.7 million for public transport subsidies, alongside about €47 million in ticket revenue. The Ministry of Regional Affairs and Agriculture said those funds are no longer enough to maintain current service levels.

Regional Affairs and Agriculture Minister Hendrik Johannes Terras said the government had already sought savings in public transport and cut costs where the impact on passengers was smallest. Further reductions, he said, would mean fewer connections.

Diesel and compressed natural gas prices have had the greatest effect on transport costs. The ministry said the price of natural gas rose by 32.6% in the third quarter. Fuel price changes are reflected in the cost of regional bus and ferry services through contract indexation. Rail operator Elron has also faced higher-than-forecast electricity costs, in addition to rising diesel prices.

The ministry forecasts a funding shortfall of nearly €4.8 million by year-end. Without the additional money, regional bus services would have had to cut about one million route kilometres, roughly half the annual distance covered by regional buses in Jõgeva County. Ferry services to the large islands would have lost about 3,400 sailings, or around two months of service, while rail services on the Viljandi route would have been reduced by about a month’s worth of journeys.