Fuel prices slightly drop

TIRANA, May 29 – Fuel prices registered a slight decrease of 10 to 15 lek/litre (Euro 0.1) in the past few days after a drop in international markets. Diesel and petrol prices are reported to have dropped to 180 to 185 lek per litre, down from historical record high of almost 200 Lek (Euro 1.4) a couple of weeks ago.
Finance Ministry data show fuel imports dropped by 5.6 percent to 457,300 tonnes in 2011, reflecting the unaffordable prices in the domestic markets.
With fuel prices at historical record high of almost 200 Lek (Euro 1.4), another threat is posed to the country’s economy this year, which international financial institutions such as IMF say will keep Albania on the brink of recession. As domestic consumption fails to recover, the country’s industries are facing higher production costs and a drop in demand.
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.