Hike in licence fees to further increase fuel prices

Tirana Times
By Tirana Times April 28, 2017 10:46

Hike in licence fees to further increase fuel prices

Story Highlights

  • The Association of Oil Companies says they will no longer appeal the decision to the country's Constitutional Court, but reflect the hike in licence fees on consumer prices with fuel prices expected to undergo another 6 lek (€0.04)/litre increase

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TIRANA, April 27 – Already facing one of Europe’s highest fuel prices but one of the lowest income, Albanian consumers will soon face a new hike under a new indirect tax levied on the oil industry through a sharp increase in licence fees on fuel and liquid gas stations.

The ruling Socialist Party-led government has recently decided licence fees for petrol stations operating in the municipality of Tirana will be at 3 million lek (€22,200) for the municipality of Tirana and at 1 million lek (€7,400) for the other 60 municipalities, a 30-fold increase compared to the current rates.

The decision comes after the country’s Constitutional Court turned down in November 2016 a controversial government decision that increased license fees on fuel and gas stations by a staggering 50-fold, cancelling it, apparently because of violating the principle of proportionality.

The Association of Oil Companies says they will no longer appeal the decision to the country’s Constitutional Court, but reflect the hike in 5–year licence fees on consumer prices with fuel prices expected to undergo another 6 lek (€0.04)/litre increase.

Fuel trading companies had earlier warned they could suspend sales if the fees were approved.

The fuel trading market, one of the country’s biggest industries, is represented by more than 1,000 fuel stations with an annual turnover of more than 1 billion euros, half of which goes in taxes that consumers pay in excise, circulation, VAT and carbon taxes.

Albanians have been facing higher liquid gas and oil prices in the first days of 2017 as a new excise rate has been imposed on vehicle liquid gas and international oil prices have registered a new increase.

Due to its high tax burden, at €1.21/litre Albania has one of Europe’s highest oil prices, although being one of Europe’s poorest countries. Albania’s diesel prices are on par with some of Europe’s richest countries such as Denmark, the Netherlands and France, according to the Global Petrol Prices portal.

Tirana Times
By Tirana Times April 28, 2017 10:46