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Albanians cut down on fuel, increase coffee cigarette consumption

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13 years ago
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All fuel, coffee, cigarette and beer imports remain lower compared to the onset of the global financial crisis in 2008

TIRANA, Feb. 6 – As prices stand at almost record high levels, Albanians have considerably cut down on fuel consumption. The situation is revealed by latest data from the General Customs Directorate showing fuel imports in 2012 were the lowest in the past five years. Data show Albania imported 431,858 tonnes of fuel in 2012, down 5.6 percent compared to 2011, and 1.2 percent compared to 2008 just before the onset of the global financial crisis.
Both diesel and petrol prices stand at an average of 185 lek/litre (Euro 1.3).
Starting from Jan. 2012 Albanians are paying an extra 7 lek/litre in a new circulation tax, compared to Sept, 2011. The high tax burden, with excise tax currently at 37 lek/litre, VAT at 20 percent, the carbon tax, port taxes and transport expenditure, all contribute to the final high price of oil.
While the Albanian government is about to sign a 10-year concession contract with Austria-based Global Fluids International to monitor the quality of fuel by marking it, the Association of Fuel Importers describes the concession as an unfair monopoly which risks a further increase in fuel prices, already at their historical record high levels. “The tariff set for this service at 200 lek/1,000 litres initially introduced by the bidder has been finalized to 614 lek/1,000 litres of fuel, which means 6.5 Euros/1,000 litres. This tariff is even higher than the profit the companies themselves make,” says the Association.

Coffee, cigarettes, beer

Coffee imports rose by 5 percent to 6,884 tonnes in 2012 but yet were lower compared to 2009 when imports reached a record level of 6,913 tonnes. Under the new changes approved last December, the excise tax on unroasted coffee, currently at 30 lek/kg will be lifted, the excise tax on roasted coffee, currently at 140 lek/kg will drop to 60 lek/kg while the customs tariffs on coffee currently at 10 percent will also be lifted. Albania is known for its massive coffee culture with coffee bars being one of the most widespread businesses.
Cigarette consumption in 2012 slightly rose to 3,631 tonnes up 11.7 percent compared to 2011, but down 14 percent compared to the previous years.
Consumption of imported beer also dropped to 29.6 million litres in 2012, registering the lowest level in the past five years. While the drop in imports in the other excise goods can be attributed to falling domestic consumption, the drop in imported beer is also a result of the increase in production by local breweries.
Revenues from excise duties reached 36.4 billion lek for 2012, significantly lower compared to the previous year by 9.9% or 4 billion. Starting from October 1 2012, the excise tax is entirely administered and collected by custom administration

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