Albania – a small market with high fuel prices

TIRANA, Aug. 29 – Albania is expected to increase its demand for fuel by 42 percent in 2005, according to experts. That follows the growth of the GDP in the country. The main areas of fuel demand will be transport (47.5 percent), followed by industry, agriculture and cities for individual consumers.
There are 18 wholesale companies in Albania, a great number for such a small country and the number of tis consumers. They supply some 900 fuel stations countrywide, that also do not offer the same price. In the capital and bigger cities the price is 5-10 leks higher than in other smaller towns. Albania has imported some 123,694 tons of fuel from Greece, Russia, Romania and any other country during the first half this year. That is 15 percent more than the same period last year.
Prices have gone equal to that of the European Union countries but its quality if far below them. Albanian traders are very ‘correct’ in following the daily increase of oil price hike in the world. That is immediately reflected in a price increase in Albania as well. But they are ‘lazy’ when such prices go down. In the last four years the fuel price has gone up 65 percent. Compared to 2005 fuel price in Albania is 20-30 leks more per liter. diesel is 130 leks/liter from 110 leks/liter in 2005 while petrol is 140 leks/liter from 120 leks/liter last year. That is also affected by the fact that Albanian wholesale companies are not big ones, consequently buying fuel in small quantities that increases their price. Besides no Albanian company has got the exclusivity or the representation of any big world company.
Naturally all these affect the country’s environment due to the low quality of the fuel sold here. Nevertheless soon, or within the year, they say. All 18 wholesale companies have to move their store places to Porto Romano, where government authorities will find it easier to check the quality and standards of the fuel.