TIRANA, May 5 – The new increase in taxes has had a negative impact on fuel imports which hit a five year low in the first quarter of this year, according to data published by the Finance Ministry.
Data shows fuel imports in the first quarter of this year dropped to 73,432 tonnes, down 15 percent compared to the same period last year.
However, customs authorities say the situation is a result of higher domestic production by local Armo refiner which has been taken over by an Azerbaijani company.
A deputy finance minister has recently said Albania’s fuel consumption in the first quarter of 2015 rose by around 470 tonnes as domestic oil consumption increased by around 13,806 tonnes.
Meanwhile, fuel prices in Albania have slightly increased to 176 lek/litre (€1.22) reflecting an increase in international oil prices which at around $68 a barrel, are almost half compared to their peak level in mid-2014.
Data published by GlobalPetrolPrices.com this week show Albania’s diesel prices stood at Euro 1.23/litre, higher than Macedonia’s Euro 0.92/litre, Montenegro’s Euro 1.19/litre and Serbia’s 1.21 euros.
Starting January 2015, the circulation tax, currently at 17 lek/ litre, has increased by another 10 lek (12 lek VAT included) taking it to 27 lek litre (Euro 0.19), not to mention the excise tax at 37 lek/litre, the carbon tax at 1.5 lek/litre on petrol and at 3 lek/litre on diesel, VAT at 20 percent, and other customs duties which make fuel prices in Albania among the highest in the region and Europe despite the country having one of Europe’s lowest GDP per capita.
Fuel imports, which meet the overwhelming majority of the country’s needs rose to 481,775 tonnes in 2014, up 4.8 percent compared to 2013, but down 0.5 percent compared to the peak level of 484,392 tonnes in 2010.
