Albania’s oil prices are at the same rate as in most EU countries where prices vary from the lowest 1.06 euro per litre in Bulgaria to 1.48 euro per litre in the United Kingdom
TIRANA, Jan. 18 – Oil prices continue remaining at their highest historical levels in Albania even during the beginning of this year with diesel and petrol sold in some petrol stations up to 160 lek/litre (1.55 dollars). Experts explain the situation with soaring prices in international markets where prices are reported to have reached up to 100 dollars per barrel, and the depreciation of the national currency, lek, against the US dollar and the euro.
Lower production from local refineries which is increasing Albania’s dependency on imports and possible abuses by wholesale traders has also affected the situation.
The compulsory replacement of Eurodiesel 350 ppm with the ultra low sulphur diesel 10 ppm starting from January 1 this year has also influenced on the situation, according to Karburant.com, the Albanian oil portal.
Fuel prices at the beginning of 2010 were at 132 lek/litre before starting their gradual growth of up to 155 lek at the end of 2010.
Wholesale traders say the state policies also play a major role considering that 55 percent of the final oil price is paid in taxes.
The high tax burden, with excise tax currently at 37 lek/litre, VAT at 20 percent, the newly increased carbon tax, port taxes and transport expenditure all add to the final price.
The situation has led to less traffic with more and more people using public transport unable to afford current prices as unemployment rises and revenues drop.
Currently, Albania’s oil prices are at the same rate as in most EU countries where prices vary from the lowest 1.06 euro per litre in Bulgaria to 1.48 euro per litre in the United Kingdom, according to Eurostat’s December 2010 data, despite the sharp difference in revenues.
Latest Eurostat data show Albania GDP per capita dropped to 2,661 euros in 2009, down from 2,784 in 2008, remaining better only compared to Kosovo which registered 1,790 euros compared to the EU 27 average of 23,500 euros.
The rising oil prices has caused an increase of up to 50 percent for some interurban lines, such as the Tirana-Durres whose ticket prices have climbed to 150 lek up from 100 lek previously.
Despite rising prices Albania oil imports continued growing in 2010. Data show some 484,391 tonnes of fuel was cleared through customs in 2010, or 52, 260 tonnes more than in 2009.
