In one of the largest fuel trading points in Albania the price this Saturday was ALL 184, or ALL 8 more than few days ago. 

Only the last few months, the price of oil has increased several times. Compared to the low level of ALL 148 that was in the first months of this year. Actually, fuel prices in Albania increased by ALL 36 per liter, or about 20%.

Market participants claim that the main reason for the price increase is related to the increase in fuel prices on the stock exchanges, where oil is traded at 84 dollars per barrel, from about 20 dollars that went down in March 2020, when the world began to suffer the consequences of the pandemic, highest levels since November 2014.

Crude oil has risen in 2021 as economies recover from the COVID-19 pandemic. Further performance depends on OPEC decision on production levels.

Currently, the oil in the country is close to the historical record levels of 190-200 ALL that reached in the period 2008-2009, when the black gold on the stock exchanges exceeded 140 dollars per barrel. While currently traded on the stock exchange, oil is traded at 84 dollars per barrel, but the increase in taxes on this product since then has made fuel in the domestic market traded more expensive. Currently, taxes on oil reach 110-120 ALL per liter, after the last increase (from excise, relicensing, scanning, marking), or 38 ALL more than 10 years ago.

Market experts claim that on stock exchanges, oil can reach up to 100 dollars per barrel, which would bring domestic fuel to a record 210 lek.

Another factor that would affect the rise in fuel prices is the government's latest plan, which aims to index the level of excise duty with inflation year after year, on all goods taxed with excise duty such as fuel, coffee, beer and cigarettes. If the average inflation rate exceeds 2.5% this year, the excise tax on oil risks reaching 38 lek next year from the current 37 lek. Calculating the rise in prices and indexation of inflation, only taxes on a liter of oil are expected to reach 130 ALL, according to market operators.

In 2020, according to INSTAT, fuel imports were about 533 thousand tons, the record level after the '90s. In the retail market, oil has a total value of about 710 million euros, with an average price of 160-165 lek that went down last year, or over 820 million euros at current prices.

(Source: Monitor)