The Transparency Board has set new oil prices, which will be in force until Saturday (March 26th).

Prices have risen for the third time in a few days. According to market sources, the new retail price of oil is ALL 245, from ALL 233 before.For gasoline, the retail price is ALL 218, the same as the last decision, as gasoline is cheaper on the stock exchanges. 

Market operators claim that there has been a change in the formula for how the Board calculates the price of fuel. According to the current methodology, the Board sets every week or when it deems necessary, at its discretion, the selling price for diesel, gasoline and liquefied petroleum gas, according to the following methodology: 

a) The price announced by the Platts exchange one day before the meeting of the Board, in CIF Med terms, for diesel, standard SSH EN 590 2018, petrol standard SSH EN 228 2018 and liquefied petroleum gas respectively propane, butane and their mixture; 
b) To the price defined in letter "a", of this article, is added a premium value of 20 USD / ton; 
c) For wholesale companies is allowed an increase of not more than 1% on the calculated price, according to letters "a" and "b", of this article, in which taxes and fees are applied, according to the legislation in force; 
ç) For retail companies an addition of not more than 5% is allowed on the calculated price, according to letters "a" and "b", of this article, in which taxes and fees are applied, according to the legislation in force. 

Point ç has already changed, and operators are recognized fixed operating costs, after the cost of purchasing the goods, proven by documents, but without any profit margin. The known additional cost is about ALL 15 per liter. 

The Association of Hydrocarbon Companies said that so far a loss-making formula had been imposed on companies. After agreeing with the companies on the expenses according to the accounting for operating expenses, the board acknowledged that the applied formula was wrong. According to the Association during this time over 100 gas stations were closed due to inability to cover costs. 

Instead, oil reached ALL 260 per liter in early March, after rising to $ 130 on international stock exchanges. Following this increase, the Government established the Transparency Board, set up to temporarily limit the wholesale / retail prices of oil and gas by-products. The board initially reduced the price to 203 lek per liter, as it fell below $ 100 a barrel on the stock exchange. But then oil rose again on the stock exchanges and currently fluctuates at around $ 120 a barrel.

(Source: Monitor)