Record oil prices announced by gross traders: from 5 to 8 extra lek per liter

TIRANA, Sept. 23- Though one liter of Eurodiesel oil is currently priced at 135 lek per liter while gasoline is at 145 lek per liter, the prices are soon expected to go up by 5-8 leks more per liter. This is not the first time such spikes have occured since the effect of the rise in the excise tax by 4 lek per liter caused an immediately price increase. Considerable price rises have hit all domestic markets and an incremental oil price change could only cause the situation to worsen. According to oil importers, a barrel is now costing $80. The entire excise tax effect is on the customers, who also pay for the sub products traded at increased cost.
Head of the Hydro Carbon Association, Viktor Nushi, has announced that the increase of 58 lek per liter will occur in the following days. Oil was traded in the last weeks at record prices as high as $83.90 per barrel though recently it has been traded at a more favorable price of $81, which is still high.
The government decision to increase the tax prices of oil and gasoline by 12 percent resulted in increased state revenues. For 2006, imports in the sector amounted to $232 million, or 40 percent more than the previous year. The Finance Ministry has not announced the effect of this on budget revenues.
Consumers claim that except increasing prices, the quality of fuel remains low and that it is destroying the vehicles. Controlling mechanisms are not in place because at different fuel sites the prices are different making way for predatory pricing, which is illegal. At the same time, the Ministry of the Environment has expressed concern about the pollution caused by D2 type fuels which are still not prohibited.