Soaring housing prices noted in Belarus
Belarus has announced an increase in utility tariffs for heating, hot water, and electricity used for heating homes, effective from mid-2025. The increase is a response to rising global energy prices, elevated inflation, economic pressures including sanctions, and the need to fund infrastructure and service modernization.
From June 1, the tariff for 1 Gcal of heat supply and hot water in Belarus increased by 10.2%, to 27.2323 rubles. The "three kopecks" tariff for 1 kWh of electricity, which requires a special additional meter, also increased by 1.1%. As a result, 1000 kWh of electricity under the "three kopecks" tariff will now cost 45.4 rubles, compared to 44.9 rubles in May.
The exact increase in utility bills for each individual household will depend on their consumption of the affected services. For a two-room apartment in Minsk of 50 square meters, with one registered person, the cost for the consumed volume of heating of 1.0163 Gcal at new tariffs is 27.68 rubles. This represents a 2.56 ruble increase compared to the cost in May for the same consumption.
It's important to note that the increase in tariffs for apartments with no registered residents and "idle" tariffs occurred on January 1.
The regional tariff hikes in Belarus are consistent with a trend observed in other Eurasian Economic Union countries, such as Russia, where utility rates have been raised significantly to manage economic pressures and fund investments.
The inflation in Belarus has been exceeding official targets, with consumer prices rising and inflation reaching 7.1% by May 2025. Projections expect rates to reach up to 9% or higher by the end of 2025. Higher utility tariffs are a contributory factor to this inflation spike, reflecting increased costs of energy and infrastructure maintenance and modernization.
These changes in utility bills are likely to impact the overall living expenses of Belarusians, as they will receive heavier utility bills in July and beyond. Belarusians should prepare for these increased costs and budget accordingly.
[1] Source for inflation data and economic context: https://www.tradingeconomics.com/belarus/inflation-cpi [2] Source for regional tariff hikes and their impact: https://www.reuters.com/business/energy/russian-gas-tariffs-rise-june-2021-05-24/ [3] Source for Belarus's economic situation: https://www.worldbank.org/en/country/belarus/overview [4] Source for the need for infrastructure and service modernization: https://www.reuters.com/business/energy/belarus-to-invest-4-bln-electricity-network-upgrade-2021-08-16/ [5] Source for the timing of the increase: https://www.finance.gov.by/ru/news/2025/06/01/ob-avtomaticheskom-rezhime-vo-syle-tarifov-na-energeticheskie-uslugi-v-belarusi-izmeniaetsya-s-1-iuny-2025-goda
- The increase in utility tariffs, including those for heating, hot water, and electricity used for heating homes, is not only a response to global energy prices and inflation in Belarus, but also a means to generate revenue for funding personal-finance needs such as infrastructure and service modernization.
- As a result of the utility tariff increases, Belarusians might need to adjust their budgets to accommodate heavier utility bills, which could potentially impact their personal-finance management specifically and overall living expenses generally.
