Data published by fuel-prices-europe.info show that at ALL 189 (Euro 1.342) on January 28, 2014, Albania has the highest diesel prices in the region and even higher compared to France and Luxembourg
TIRANA, Jan. 29 – The increase in fuel taxes in late December 2013 under a new fiscal package has made Albania’s diesel and petrol prices the highest in region and the whole Europe. Data published by fuel-prices-europe.info show that at ALL 189 (Euro 1.342) on January 28, 2014, Albania has the highest diesel prices in the region and even higher compared to France and Luxembourg.
Petrol prices at Euro 1.413 also rank Albania among the highest in Europe despite having one of the lowest GDP per capita. 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.
Albania’s GDP per capita expressed in purchasing power standards remained unchanged at 30 percent of the EU-28 in 2012, ranking on the bottom of 39 country-list, according to a report published by Eurostat, the statistical office of the European Union.
The entry into force of the new fiscal package was accompanied with an immediate increase in fuel and tobacco prices in the first days of January, raising doubts that traders are abusing the increase in excise rates considering the huge amounts of stock and staggering imports in December when the fiscal package was being discussed.
Fuel prices rose by 6 to 8 lek litre in the first days of January climbing to an average of 190 lek/litre (Euro 1.33) while cigarette prices have increased by an average of 10 to 20 lek (Euro 0.07 to 0.14).
Wholesale fuel traders say fuel prices are expected to further increase in the coming days to reflect the full 10 lek/litre increase in the circulation tax and the 2 lek in VAT, a total of 12 lek. Traders dismiss accusations of abuses saying that they pay their excise at the moment fuel is launched into market from their fiscal warehouses where they store fuel after customs clearance.
Government plans to collect an extra 39 million euros from the increase.
With an annual turnover of around 1 billion Euros, the fuel market is one of the biggest industries in the country and has a direct impact on all sectors of the economy.
Starting August 2013, for the first time in Albania, fuel will be marked at minor cost in an effort to strengthen monitoring of the market which has often abused consumers. The process will be carried out by Global Fluids International (GFI), a subsidiary of Canadian-based Eurocontrol which has won a 10-year contract to monitor the quality of fuel in Albania.
