Rising fuel prices paralyze fishing sector

TIRANA, Oct.1 – Rising fuel prices have paralyzed the majority of fishing boats in Durres. Local media say the majority 70 percent of fishing boasts in Durres cannot afford the staggering fuel prices at a time when they get no subsidies. Fishermen in Durres are getting more pessimistic if they will ever benefit fuel subsidies at a time when the whole oil sector is becoming private-owned with the privatization of Albpetrol oil firm.
After slightly dropping last summer, fuel prices have reached record high levels again. Both diesel and petrol prices stand at an average of 195 lek/litre (Euro 1.4).
With fuel prices at historical record high, another threat is posed to the country’s economy this year, which international financial institutions such as IMF say will keep Albania on the brink of recession. As domestic consumption fails to recover, the country’s industries are facing higher production costs and a drop in demand.
Experts say fuel prices could be lower if the national currency had not lost so much ground against the US dollar. Lek has depreciated by around 10 percent against the US dollar during the past year. Starting from Jan. 2012 Albanians are paying an extra 7 lek/litre in a new circulation tax, compared to Sept, 2011. The high tax burden, with excise tax currently at 37 lek/litre, VAT at 20 percent, the carbon tax, port taxes and transport expenditure, all contribute to the final high price of oil.
Finance Ministry data show fuel imports during the first eight months of this year reached around 219,000 tonnes, around 7,000 tonnes more compared to the same period last year. However, as prices stand at record high levels, the amount of imported fuel is considerably lower compared to 2009 and 2010 when imports for the eight months of the year were ar 236,000 and 268,000 tonnes respectively.