TIRANA, April 13 – Oil prices in Albania have increased by an average of 5 lek (€0.035)/litre following a sharp rise in fuel station licences, deteriorating Albania’s position as one of the countries with the highest global oil prices.
At €1.15/litre, Albania had the world’s 13th most expensive diesel prices this week, much higher even compared to Germany and France, according to Global Petrol Prices portal. Diesel prices in neighboring Macedonia stood at €0.72/litre compared to Serbia’s €1.06/litre.
Experts explain the situation with the high tax burden on oil, which is considered an easy tax to collect, making Albania’s fuel prices among the highest in Europe although the country has one of the lowest GDP per capita.
Fuel prices are further expected to increase as oil prices have currently recovered to $40 a barrel compared to a 12-year low of $27 last January and around $110 a barrel from 2010 until mid-2014 when they embarked on a downward trend.
A sharp increase in licensing fees is also being included in the final oil prices.
Last December, the Albanian 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 licensing fees stood at 1 million lek (€7,000) for the municipality of Tirana and at 200,000 lek (€1,400) for other municipalities.
Tirana petrol stations are also facing a new education infrastructure tax at 37,000 lek (€263) a year.
Importers say a litre of diesel arrives at Durres Port at 35 lek (€0.25)/litre and undergoes 89 lek (€0.63)/litre in taxes. Oil companies say they are now charging 30 lek/litre to cover transport and operating costs and make a profit.
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.
Although being a major oil producer, Albania imports the majority of its oil needs due to lack of refineries and high costs of refining its heavy crude oil.
The Albanian government said some 40 wholesale fuel companies have had their licenses revoked during this year because of not meeting their storage capacity requirements.
The country’s Central Technical Inspectorate said it fined oil 140 companies during the first quarter of this year because of not meeting fuel quality standards and lacking documentation.
