TIRANA, Jan. 7 – Fuel prices in Albania continue remaining at their December levels despite a 12 lek (Euro 0.084) hike in circulation tax which has entered into effect since January this year.
Experts say the situation is a result of global fuel prices continuing their decline and the reserves oil companies have from their late 2014 imports.
The price of Brent crude oil fell below $50 a barrel this week for the first time since May 2009.
Experts expect the price of oil to fall further as North American shale producers continue to supply increasing quantities of oil and gas, and the oil-producing group Opec resists calls for cuts in production to support prices.
However, the sharp drop in international markets has been poorly passed on to consumers as international oil prices have hit a record low of below $50 a barrel, down around 56 percent since their peak in mid-June 2014,
Oil prices in Albania stand at an average of 165 lek/litre (Euro 1.19), down only14 percent compared to last June when fuel prices embarked on downward trend after a slow-down in manufacturing in China and Europe and increasing supply from North America.
The depreciation of the Albanian national currency against the US dollar which since May 2014 has lost around 10 percent has also had an impact.
Data published by GlobalPetrolPrices.com this week show Albania’s diesel prices stood at Euro 1.19/litre, the same to Serbia, but higher than Macedonia’s Euro 0.84/litre and Montenegro’s Euro 1.03/litre.
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.
