Retail fuel prices are rising again across the Western Balkans, prompting several governments in the region to revive or extend measures aimed at easing the impact on consumers. Albania remains the exception so far, despite having the highest diesel price in the region.

In Albania, diesel has been selling at around Lek 219 per liter for almost a week. Converted into euros, the price is about Euro 2.30 per liter, up from around Euro 2.06 per liter in July, while petrol is selling at approximately Euro 2.10 per liter. Compared with July, the diesel price has increased by around Euro 0.24 per liter.

Comparative data collected by Monitor correspondents across the Western Balkans show that fuel prices in Albania remain significantly above those in neighboring countries, reviving the debate over the country’s heavy fuel taxation.

Diesel in Albania is around 41% more expensive than in North Macedonia, which currently has the lowest price in the region, and about 17% more expensive than in Serbia, the second-most expensive market after Albania.

At around Euro 2.30 per liter, diesel in Albania is also approximately 30% above the regional average of Euro 1.77 per liter, according to Monitor calculations.

While most countries in the region apply a relatively straightforward pricing structure (base price plus excise duty, with VAT then charged on the total), Albania imposes two additional taxes on top of the Euro 0.37 per liter excise duty and 20% VAT.

These are the circulation tax of Lek 27 per litre and the carbon tax of Lek 3 per litre. As a result, taxes account for roughly 50% of the retail price of diesel, or around Lek 100 per litre.

Despite the latest rise in prices, the Albanian government has so far announced no new fiscal measures to reduce the burden on consumers.

In March, the government approved a decision allowing a 20% reduction in fuel excise duties if the retail diesel price exceeded Lek 220 per liter. For petrol, the mechanism applies when the price exceeds Lek 200 per liter.

The measure has been used only to a limited extent. Finance Minister Petrit Malaj previously told the Parliament that it had been activated twice, with a total fiscal cost of Lek 37 million, or around Euro 400,000.

In Kosova, diesel has risen to Euro 1.76 per litre, from around Euro 1.56 per litre in July, according to Monitor’s correspondent. The price has therefore increased by about Euro 0.20 per liter. Petrol has reached around Euro 1.53 per liter.

Despite the increase, the government has not introduced new tax cuts. However, a regulation adopted in March remains in force, limiting the profit margin on diesel sales to Euro 0.12 per liter at the retail level and Dollar 0.02 per liter at the wholesale level.

Meanwhile, in Serbia (the country with the second-highest oil prices in the region after Albania), diesel has reached Euro 1.96 per liter, up from a range of Euro 1.82-1.87 per liter in July.

Following the increase, the Serbian government extended until the end of August its decision to reduce excise duties on petroleum products by 20%.