TIRANA, March 1 – Albanians considerably cut consumption of imported fuel, cigarettes and beer during the past five crisis years as tax hikes made them more expensive, but continued consuming more coffee, according to the customs administration.
Fuel imports in 2015 dropped by an annual 3.7 percent to 463,887 tonnes and were down by 20,000 tonnes compared to their peak level in 2010.
While Albania is a major oil producer, the overwhelming majority of its domestic consumption is met by imports and domestic crude oil is destined for exports.
Despite international oil prices hitting a record low, Albania’s oil prices remained one of Europe’s highest in 2015 due to the high tax burden levied on them at about 100 lek (Euro 0.7) per litre.
Cigarette imports have suffered drastic decline in the past five years due to sharp hikes in excise duty, making prices unaffordable for thousands of smokers who have mostly shifted to domestic hand-rolled tobacco.
Cigarette imports dropped to 2,478 tonnes in 2015, down from 2,968 tonnes in 2014 and a record high of 4,500 tonnes in 2010, giving rise to allegations of increased smuggling.
In 2015, the excise duty on 20-cigarette packs was increased by another 20 lek (Euro 0.14), taking the total excise rate to 110 lek (€0.77) per packet. Plans to apply a new excise duty hike for 2016 were dropped following the sharp decline in imports.
Beer imports rose to 30 million tonnes in 2015, up from 25.8 million tonnes in 2014 and a record high of 34 million tonnes in 2010. Domestic breweries meet the majority domestic beer consumption.
Coffee was the only key excise product not to be affected by crisis.
Known for their coffee culture, Albanians increased consumption rose to 8,605 tonnes in 2015, up from 7,294 tonnes in 2014 and 6,335 tonnes in 2010.
Albanian households considerably cut spending on food, drinks and restaurants in the past five crisis years, according to a survey carried out by the country’s state statistical institute, INSTAT.
The survey measuring the budgets of some 7,800 households nationwide showed that spending on food and non-alcoholic beverages, the key item in the consumer basket, dropped by 5.3 percent from 2009 to 2014. Household spending on alcoholic beverages and tobacco also dropped by 9.9 percent compared to a sharp 33.4 percent decline on restaurants and hotels.
