TIRANA, April 20 – The bankruptcy of Albania’s oil refiner ARMO and its stop of operations led to a sharp 50 percent in fuel imports in the first quarter of this year.
Data published by the country’s customs administration shows fuel imports in the first quarter of this year registered a record high of 109,645 metric tons, up 49.3 percent compared to same period in 2015 as the local refiner has been paralyzed in a chain of debts and seizure of assets by its creditors.
Canada-based Bankers Petroleum, the country’s biggest oil producer, also confirms the situation saying that sales to the export market during the first quarter of 2016 represented the overwhelming 96 percent of total sales compared to only 47 percent in the first quarter of 2015.
Last February, a Tirana-based private bailiff failed to sell several key assets by ARMO oil refiner whose minority 15 percent stake is still held by the Albanian government following its botched privatization back in 2008. The company’s auction came more than two years after an Azerbaijani-based company took over the majority 80 percent stake in ARMO and the company’s continued accumulation of debts to creditors and the government in unpaid taxes.
Fuel imports in 2015 dropped by an annual 3.7 percent to 463,887 tonnes and were down by 20,000 tonnes compared to their peak level in 2010.
While Albania is a major oil producer, the overwhelming majority of its domestic consumption is met by imports and domestic crude oil is destined for exports. Due to its poor quality, Albania’s heavy crude oil is mainly exported and processed as bitumen used to pave roads.
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 12th most expensive diesel prices this week, much higher even compared to Germany and France, according to Global Petrol Prices portal.
