TIRANA, Jan. 13 – Fuel prices in Albania fell by an average of 7 lek (€0.05) litre in the past few days, positively reflecting the new cut in international oil prices which hit a new 12-year low this week, but yet remaining one of Europe’s highest.
Retail fuel prices dropped to an average of 162 lek (€1.15) this week, at a slower pace compared to other regional countries, reflecting the poor transmission of international oil prices into the local market due to the high tax burden levied on fuel.
International oil prices fell below $30 a barrel this week, hitting a 12-year low, as oversupply persists amid weak global demand.
Prospects of better reflection of the cut have been recently marred following a government decision to increase licence fees on fuel and gas stations by a staggering 50-fold compared to current rates.
The new licence fees are expected to considerably affect the operation of some 1,000 fuel stations in Albania and translate into higher costs for Albanian consumers who already face one of Europe’s highest oil prices.
Last December, the government decided the fee on the granting and renewal of licences on oil and liquid gas stations will increase to 5 million lek (€36,000) for retail oil and gas businesses operating in the municipality of Tirana and to 2 million lek (€14,500) for other municipalities. The previous rates on the five-year licences ranged from 130,000 lek (€940) for the municipality of Tirana to 100,000 lek (€724) in Durres.
Fuel prices in Albania have undergone only a moderate decline despite international oil prices having haled during the past year, reflecting the high tax burden levied on fuel.
Data published by GlobalPetrolPrices portal this week show Albania’s diesel prices stood at €1.18/litre, higher than Macedonia’s €0.69/litre, Montenegro’s €0.87/litre, Serbia’s €1.07 and even Germany’s €1.03 and France’s €1.06/litre.
Starting January 2015, the circulation tax on fuel increased by another 10 lek (12 lek VAT included) taking it to 27 lek litre (€0.19), not to mention the excise tax at 37 lek/litre (€0.27), 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.
