TIRANA, Nov.29 – Oil prices in Albania have hit record levels at 145 lek per liter form the previous week’s level of 135 lek per liter and at this point of time oil is sold at the same price as gasoline. Compared to four years ago the price has doubled, but even compared to the beginning of the year it has increased by 40 percent. All other hydro-carbures have changes as well with liquid gas at 70 lek compared to the previous 60 lek. At the short term the experts say consumers will have to deal with this rice because no changes are expected. This situation does not rule out future increases up to 150 lek as well. More than the changes in the world markets the short term effect on the price has come from the increased excise tax by 5 lek per liter. Actually one liter of oil type D1 in the local market is sold at 145 lek per liter while 6 months ago it was varying between 115 – 120 lek per liter. Traders have justified this change with international market prices rising. According to official statistics Albania imports around 500.000 tons of fuel annually while local production, mainly refined oil by ARMO is at the level of 250.000 tons per year.
World market
In the international exchange the oil prices actually have fallen given that OPEC has increased the quantity supplied. Down form the record price of $100 per barrel, oil fell to $ 94 dollars. Leaders of OPEC have also declared that they will produce even more in order to stabilize the price. Expectations are that production will go up by 750.000 barrels a day. Experts predict that given the economic recession of the United States, the largest consumer of oil, demand has fallen down so the price might go down further. Expectations for the long term though are not optimistic as the oil reserves worldwide are running out and the cost of production is increasing.
IMF warns about oil driven inflation worldwide
The International Monetary Fund has warned that the world economy might face a crisis of high inflation. The head committee of IMF has expressed concern about the general upward movement of food and oil prices observed worldwide. It has also called upon central bank governors to be really careful and do all they can to control inflation in their countries. Rising oil prices seem to be driving all other prices up and the trend is expected to continue.
