Enquiry launched into diesel market

TIRANA, Feb. 14 – New Economy Minister Nasip Naco has demanded the immediate establishment of a working group to investigate into the oil companies operating in the country following allegations by some companies of unfair competition from the sale of crude oil not meeting legal and technical standards.
Naco, who last month replaced his Socialist Movement for Integration (SMI) party leader Ilir Meta following corruption allegations, said the Central Technical Inspectorate will impose strict sanctions including huge fines and even removal of licences in case violations are identified.
Hailing the ministry’s decision, oil importers said the change by only 1 percent in the percentage of sulphur allowed by the government decision meant an additional 15 percent cost. “This creates inequality on the market, meaning that if the companies import fuel with a sulphur percentage at only 1 percent above the standard, they win not less than 120 USD/tonne,” the Association of Hydrocarbon Companies.
Oil prices continue remaining at their highest historical levels in Albania even during the beginning of this year with diesel and petrol sold in some petrol stations up to 170 lek/litre (1.55 dollars). Experts explain the situation with soaring prices in international markets where prices are reported to have reached up to 100 dollars per barrel, and the depreciation of the national currency, lek, against the US dollar and the euro.
The compulsory replacement of Eurodiesel 350 ppm with the ultra low sulphur diesel 10 ppm starting from January 1 this year has also influenced on the situation, according to Karburant.com, the Albanian oil portal.
The high tax burden, with excise tax currently at 37 lek/litre, VAT at 20 percent, the newly increased carbon tax, port taxes and transport expenditure all add to the final price.
The situation has led to less traffic with more and more people using public transport unable to afford current prices as unemployment rises and revenues drop.