Fuel price at gas stations promise nothing good for the consumer’s pockets. Drivers have started to say that it’s right time to reduce driving private cars because of the increased diesel and gas prices. The monthly fuel price tag is increasing rapidly, but there are fears that it could get worst in the future. How far up oil prices will go is something everyone is stuck to while visiting the gas station. It was long ago (in fact not when considering the time, something two-three years ago). Back in the good times diesel cost as little as 60 leks per litter. By the end of the month you would spend 1,000 or 2,000 leks for fuel.
Price has gone up incerasiblgly in the last 10 years. The oil crisis has a global impact, but in Albania the bad news transforms quickly in high prices.Not difficult to learn about the oil crisis if you look at the new prices many times a year. If September 2005 found the Albanian diesel price at 120 leks per liter, double what it cost in 1995, now it stands at 130 leks per liter. The monthly gas bill for the car owner is seriously affecting his finances. The oil price is the best justification to park the car during the week and use it only for the weekends or to travel outside the country.
Paying more means not only at the gas station but in many shops and services elsewhere. The price of agriculture products has increased to reflect this year’s the rise of the oil prices. The airplane tickets have also increased. Even imported shoes had price hike due to oil prices because of their transport cost. All the increase in the bills have a common reason – “oil crisis” – which in Albania has a double impact.
Negative impact on different sectors
Transport is the first sector that reflects the negative impact of the price hike.All transport tickets prices have grown with the price of oil. Currently all sea, land and air transport tickets cost more than before the oil crisis started. Inter-city buses have also increased their prices. Taxi drivers have followed suit, saying they will increase cab fares by at least LEK 100 for traveling inside city.But the increase in transportation costs also increases the cost of imported products. Agriculture is a sector where the increase is felt indirectly as the use of agricultural machinery costs more. The industry of agriculture and food has reflected immediately the increase of the cost of transport and agriculture products. Agricultural products have a higher cost because of using oil-fueled machinery.
Experts say that Albania is expected to increase its demand for fuel by 42 percent in 2015 following the GDP growth in the country. The main areas of fuel demand will be transport (47.5 percent), followed by industry, agriculture and cities for individual consumers.
There are 18 wholesale companies in Albania, a great number for such a small country and the number of tis consumers. They supply some 900 fuel stations countrywide, that also do not offer the same price. In the capital and bigger cities the price is 5-10 leks higher than in other smaller towns. Albania has imported some 123,694 tons of fuel from Greece, Russia, Romania and any other country during the first half this year. That is 15 percent more than the same period last year.
Prices have gone equal to that of the European Union countries but its quality if far below them. Albanian traders are very ‘correct’ in following the daily increase of oil price hike in the world. That is immediately reflected in a price increase in Albania as well. But they are ‘lazy’ when such prices go down. In the last four years the fuel price has gone up 65 percent. Compared to 2005 fuel price in Albania is 20-30 leks more per liter. diesel is 130 leks/liter from 110 leks/liter in 2005 while petrol is 140 leks/liter from 120 leks/liter last year. That is also affected by the fact that Albanian wholesale companies are not big ones, consequently buying fuel in small quantities that increases their price. Besides no Albanian company has got the exclusivity or the representation of any big world company.
Naturally all these affect the country’s environment due to the low quality of the fuel sold here. Nevertheless soon, or within the year, they say. All 18 wholesale companies have to move their store places to Porto Romano, where government authorities will find it easier to check the quality and standards of the fuel.
