The Minister of Economy and Innovation, Delina Ibrahimaj, said that the government has decided to re-establish the Transparency Board to monitor fuel prices.

During a media interview, the minister announced that a 20% reduction in the oil excise tax has also been decided, from the current Lek 39.6.

“Looking at the progress in recent days, we have decided to re-establish the Transparency Board and also intervene in the excise tax level, reducing it by 20% from the current Lek 39.6,” declared the minister.

These two acts, she announced, will be urgently approved by the Council of Ministers. “I want to make it clear what the regime we will enter will be like. We have a formula that is in force: we take into account the Platts exchange price, taxes, and for the wholesale price, there will be a margin of Lek 3 per liter, while for the retail price, Lek 12 per liter. Through this mechanism, we guarantee that prices will be controlled and there will be no abuse,” she declared.

According to the minister, these prices are a ceiling and cannot be traded above them, as there are penalties.

The minister emphasized that the government, since the start of the conflict in the Middle East, has established a Task Force to monitor prices and that it does not appear that companies have speculated with prices, as the price on international exchanges has increased by 80%, while in the domestic market by only 24%.

“So far, what we have observed is that there has been no price abuse. Prices today in Albania have increased by 24%, while on the stock exchange they have increased by 80%. So it is speculation to say that there is price speculation. The profit margin of companies is around 8-9%, acceptable considering the costs of doing business,” said the minister.

Minister Ibrahimaj also stressed that work is being done to establish a public entity to ensure mandatory fuel reserves. According to her, the draft law is ready for public consultation.

“This public entity will maintain the mandatory reserve, and the draft law is in public consultation,” said Ibrahimaj.

The minister noted that so far there has been no increase in food prices and that in the event of their increase, the government will intervene with support packages for categories in need and pensioners.

A 20% reduction in excise duty means that it will drop to 32 lek per liter excluding VAT, i.e., a saving for companies of at least Lek 8, which should automatically translate into a reduction in the price of fuel by at least Lek 8-10 per liter, taking into account the effect of VAT, according to calculations of local media Monitor.

Oil rose at the main fuel trading points by Lek 10-15 per liter on Thursday, reaching around Lek 214 (Euro 2.20), the highest level since the Russia-Ukraine war crisis. On the stock exchanges, oil is being traded at 100 dollars per barrel.

At the end of February, before the conflict in the Middle East began, a liter of oil was traded domestically at Lek 170-175 per liter and on the stock exchanges between Dollar 65-70 per barrel.