March 27, 2026
by in News

Fuel Importers Warn of Supply Disruptions as Government Price Caps Fall Below Cost in Albania

Following yesterday’s decision by the Transparency Board, which set retail fuel prices in the country at 203 lek per liter for diesel and 175 lek per liter for gasoline, down from 214 and 199 lek respectively, and wholesale prices at 191 and 163 lek per liter, major fuel importers have responded.

They have warned the Ministry of Finance and Economy and the Ministry of Infrastructure and Energy that, in order to avoid selling below cost and suffering very large losses, they are forced to take temporary measures, specifically:

  • Suspending and limiting wholesale sales of diesel and gasoline;
  • Slowing down and restricting the customs clearance process for fuel in Porto Romano until further notice.

Monitor is in possession of at least two letters that the importing companies sent today to the Ministry of Finance and Economy and the Ministry of Infrastructure and Energy.

The importers justify this decision by arguing that the retail prices set by the Transparency Board are below cost.

In the letter, they explain that following the latest publication of prices by the Transparency Board on March 26, 2026, which set the ceiling wholesale price for diesel at 191 lek/liter and for gasoline at a maximum of 163 lek/liter, they wish to inform the authorities of the significant issues related to the method used to calculate these prices.

According to the importers, the calculation is based on the formula used in 2022, which does not reflect current market conditions and, in particular, the contracts currently in force with our suppliers. As a result, the prices set do not reflect the actual costs that currently determine the price of one liter of diesel and gasoline for wholesale trade.

Market close on March 26, 2026:

Diesel = $1,402.5/ton, up by $134.75/ton
Gasoline = $1,037.25/ton, up by $49.25/ton

Based on the current premiums we have:

Diesel = CIF + $55/ton
Gasoline = CIF + $75/ton

Today’s costs are:

Diesel = 206.2 lek/liter
Gasoline = 169.7 lek/liter

With a gross margin of 3 lek/liter, today’s wholesale selling prices should be:

Diesel = 209.2 lek/liter
Gasoline = 172.7 lek/liter

Therefore, there is a very large gap between the prices that should apply today and the selling prices set by the Transparency Board. Specifically, diesel is 18.2 lek/liter higher, while gasoline is 9.7 lek/liter higher, the importers state in the letter obtained by Monitor.

In their letters, the importers have requested that the “Transparency Board for the temporary limitation of wholesale/retail prices of petroleum subproducts and gas” be convened as soon as possible to approve new selling prices for gasoil and gasoline.

They also call for a revision of the calculation methodology, so that the price is applied under CIF Med conditions, with the premium for gasoil calculated at +$50/ton and for gasoline at +$75/ton.

2- Gross margins should be calculated as follows: for gasoil, +3.5/liter wholesale and +15/liter retail; for gasoline, +4.5/liter wholesale and +16/liter retail.

Retail prices were reduced today

Earlier today, following the Transparency Board’s decision, retail diesel prices at fuel stations fell by 11 lek per liter. From 214 lek per liter, diesel is now being sold at 203 lek per liter. A price drop was also recorded for gasoline: from 199 lek per liter previously, the price today has fallen to 175 lek per liter.

Earlier, importers had warned that if prices were reduced to cost, they would suspend supply, since the government cannot pass on all the costs of the war to them. “Cost cannot be what is determined by a board, but what is actual, proven by contract, supplier invoice, and therefore by the value of the transaction, and this value is used as a reference by customs for VAT purposes. No board or entity has the legitimacy to order a business to sell below cost,” said Luigj Aliaj of the Association of Hydrocarbon Companies.

In Albania, fuel prices are 30–40% higher than in neighboring countries, but according to importers this is explained by the heavy tax burden applied to fuel prices. In total, an Albanian currently pays 1.16 euros in taxes per liter of diesel, or 53% of the final price; a Macedonian citizen pays 0.58 euros per liter, or 36% of the final price; a Montenegrin pays 0.55 euros, or 35%; and a citizen of Kosovo pays 0.67 euros, or 38.5% of the final price. Importers also say that the 20% excise tax reduction, which was expected to lower diesel prices by 8–10 lek per liter, has not yet entered into force.

This has led many vehicle users to refuel in neighboring countries, spending up to 1 million euros per day.

March 18, 2026
by in News

Albania Proposes Strategic Shift: State to Take Over Emergency Oil Reserves from Private Sector

Enea Karakaçi, Minister of Infrastructure and Energy (Ministry of Infrastructure and Energy), stated that one of the ministry’s principal priorities remains ensuring the uninterrupted supply of fuel to the market.

Minister Karakaçi announced that a new draft law on the oil reserve, expected to be approved by the government within two to three weeks, will transfer physical custody of the reserve from private operators to a state agency for up to 90 days.

“With respect to the reserve obligation, which is calculated based on last year’s daily turnover, we have notified all operators that they are required to hold a 30-day reserve, with the remainder contracted by other means, to ensure there is no shortage of hydrocarbons.

The blockade of the Strait of Hormuz has not affected supplies to our country.

The new draft law on the oil reserve, prepared in accordance with the European Union directive, will be adopted by the government within two to three weeks. Under the draft law, oil reserves will no longer be held by companies but by a state agency that will ensure the physical availability of hydrocarbons for up to 90 days.”

Minister Karakaçi also reported that retail inspections indicate no abuse in fuel pricing, and that company profit margins ranging from 13 to 14 lekë per litre are acceptable.

“The final retail price in Albania is largely determined by import costs, which makes domestic prices volatile. A cost of 147 lekë excluding VAT reflected the real cost of the product. This indicates a gross profit of 13 to 14 lekë, which is an acceptable margin. We have not observed price abuse, and therefore did not find it justified to convene the board.”

Prime Minister Edi Rama added that Albania does not produce petroleum suitable for final retail use, because the oil we extract is heavy crude. Processing it for consumer-grade fuel would require a refinery and entail high costs for conversion to a usable product.

“As history has shown, this oil has not proven suitable for direct consumer use, except for certain industrial applications.”

March 11, 2026
by in News

Albania Ranks Highest in Europe for Fuel Costs Relative to Purchasing Power, Doubling Regional Averages

Albania currently has the most expensive automotive fuel in Europe when adjusted for purchasing power and citizen income, imposing a disproportionate economic burden on consumers and businesses alike.

An analysis conducted utilizing 2026 per capita income data from the International Monetary Fund’s (IMF) Global Economic Outlook and current spot prices from Global Petrol Price, reveals a stark disparity between Albanian fuel costs and domestic earning power.

According to the IMF, Albania’s average per capita income for 2026 is projected at $12,000 annually, equating to roughly $33 per day. With domestic retail diesel prices currently hovering around 200 Albanian Lek (ALL) per liter approximately $2.40 at the current exchange rate an average Albanian citizen must allocate a staggering 7.2% of their daily income to purchase a single liter of diesel.

A Stark Regional and European Divide

Data indicates that this 7.2% threshold is the highest financial burden for fuel among all analyzed European nations. When compared to neighboring Balkan states, the economic strain on Albanian consumers is at least twice as high.

For context, purchasing one liter of fuel requires:

  • 3.7% of daily income in Serbia

  • 3.6% in Montenegro

  • 2.8% in Romania

  • 2.5% in Greece (which, despite having one of Europe’s most expensive nominal fuel markets, presents a much lower relative burden due to higher median incomes).

In absolute nominal terms, regional neighbors boast fuel prices averaging 15% to 30% lower than Albania, particularly in Kosovo and North Macedonia.

The contrast is even more pronounced when benchmarked against advanced European economies. In nations like Italy, France, Germany, and Belgium, a liter of fuel typically consumes less than 2% of daily income. Notably, the Netherlands which holds the highest absolute nominal fuel price in Europe requires its citizens to spend only 1.1% of their daily income per liter. This means the relative burden on a Dutch consumer is nearly seven times lower than that of an Albanian.

Even stripping away purchasing power parity, Albania ranks fifth outright in Europe for the highest nominal fuel prices, trailing only the Netherlands, Denmark, Norway, and Switzerland countries where fuel is marginally more expensive by just 10 to 30 cents per liter.

Heavy Taxation and “Rocket and Feather” Pricing Dynamics

Because fuel is a foundational component of transport and logistics, this skewed cost-to-income ratio actively drives up broader commodity prices and exacerbates household expenses. Industry analysts point to two primary domestic drivers for this inflated market: aggressive taxation and asymmetrical price transmission by market operators.

1. The Tax Burden: State levies account for an estimated 60% of the final retail price at the pump. The taxation structure per liter includes:

  • Excise Tax: 37–38 ALL

  • Circulation (Turnover) Tax: 27 ALL

  • Carbon Tax: 3 ALL

  • Value Added Tax (VAT): 20% applied to the final cumulative price.

2. Asymmetrical Market Responses: The Albanian downstream market consistently exhibits the “rocket and feather” effect. Retail prices react rapidly to upward shocks in global crude and refined product benchmarks, yet reductions are passed on to consumers at a noticeably sluggish pace during global downturns.

During periods of falling international prices in 2019 and 2024, fuel importers and distributors capitalized on the lag in price reflection, expanding their profit margins by 0.5 to 1 percentage point. Market operators routinely exploit the delayed localized response to global price drops, structurally padding profit margins at the expense of end-users.

March 11, 2026
by in News

Albania Establishes Joint Task Force to Monitor Hydrocarbon Sector and Prevent Fuel Price hikes.

Albania’s General Directorate of Taxation and General Directorate of Customs are establishing a joint Task Force specifically designed to monitor the downstream hydrocarbon sector and prevent abusive fuel price increases.

Minister of Finance Petrit Malaj, during a recent summit with General Director of Taxation Ilir Binaj and General Director of Customs Besmir Beja, finalized an operational roadmap to launch this inter-agency initiative.

The Task Force is mandated to tighten tax and customs oversight and improve enforcement efficiency across both the wholesale and retail hydrocarbon markets. The primary objective is to shield Albanian consumers from unjustified, speculative fuel price hikes. Minister Malaj emphasized that this operational strategy is a direct response to recent geopolitical developments driving volatility in global energy markets.

“We initiated this operational group prompted by the recent conflict involving Iran, the US, and Israel, which has directly impacted global hydrocarbon prices,” Malaj stated. “Both institutions will rigorously monitor pricing to prevent any exploitative hikes within the wholesale and retail trade sectors.”

Key Operational Measures

The agencies have agreed on a comprehensive enforcement framework, which includes:

  • Operator Risk Assessments: Conducting targeted evaluations of market players to identify high-risk entities.

  • Market Intelligence: Gathering field data regarding potential market abuses and speculative pricing.

  • Physical and Desk Audits: Expanding enforcement beyond the routine review of tax and customs documentation to include physical inspections of fuel volumes at wholesale depots and retail stations.

Inter-Agency Coordination and Long-Term Goals

Minister Malaj reiterated the Ministry of Finance’s commitment to robust tax and customs administration in the public interest. Besmir Beja, General Director of Customs, confirmed that the inspections will be executed nationwide, explicitly targeting entities flagged during the risk assessment phase.

According to Beja, joint inspection units will ensure all market activity strictly complies with regulatory frameworks. This includes verifying that every transaction is fiscally recorded and that all distributed fuel satisfies statutory customs and tax obligations.

Ilir Binaj, General Director of Taxation, noted that the respective agencies have fully coordinated the operational plan and commenced preliminary risk analyses. He highlighted that intelligence gathered from previous enforcement operations has been instrumental in pinpointing specific vulnerabilities within the sector. The ultimate objective is to sustain this joint operation over the long term to drive comprehensive market formalization and ensure the orderly functioning of Albania’s domestic hydrocarbon market.

March 5, 2026
by in News

Kosovo Government Caps Fuel Profit Margins After Sudden Price Surge

The Government of Kosovo has introduced new measures to limit the rise in fuel prices after suspicions that market operators were taking advantage of recent developments to increase profits. Through a new decision, authorities have established maximum profit margins per liter for both wholesale and retail fuel sales.

Within just one day, fuel prices in Kosovo increased by more than 20 cents per liter. The rapid price movement followed escalating tensions in the Middle East and disruptions in the global energy supply chain.

However, such a sharp increase over a short period has been widely described as excessive and potentially exploitative. Data from Kosovo Customs indicate that the actual import price of fuel rose only marginally.

According to Customs figures, the import price increased by just 1.5 cents per liter. On Monday, a liter of diesel was imported at 54 cents, while on Tuesday the price rose slightly to 55.6 cents.

Meanwhile, retail prices at fuel stations showed a much larger increase. On Monday, diesel prices ranged between €1.18 and €1.25 per liter. By Wednesday, the same fuel was being sold for between €1.35 and €1.40 per liter. Gasoline prices followed a similar trend, rising from between €1.17 and €1.24 on Monday to as high as €1.35 per liter by Wednesday.

Due to the significant discrepancy between the modest rise in import costs and the sharp increase at fuel stations, the Minister of Trade, Mimoza Kusari-Lila, signed a decision on Wednesday establishing temporary price caps.

Under the decision, the maximum allowed profit margin for wholesale fuel sales is set at 2 euro cents per liter, while the retail margin is capped at 12 euro cents per liter.

According to the ministry, the measure follows continuous monitoring of the oil market, analysis of daily data from Kosovo Customs, and reports from the Central Market Inspectorate, which concluded that increases in import prices were immediately and disproportionately reflected in retail prices. Inspectors will be deployed in the field to oversee the implementation of the decision.

The regulation will enter into force one day after its publication in the Official Gazette.

Maximum Allowed Commercial Margins

  • Wholesale sales: up to 2 euro cents per liter

  • Retail sales: up to 12 euro cents per liter

The calculation of these maximum margins is based on Article 4, paragraphs 1.1 and 1.2 of Administrative Instruction No. 03/2022 on the Regulation of Petroleum Product Prices and Renewable Fuels, as well as other protective measures. Authorities stated that the decision was made after assessing current market conditions and within the legal competencies of the ministry.

Earlier on Tuesday, Fadil Berjani, head of the oil traders’ association, warned that geopolitical tensions in the Middle East are directly affecting global oil markets.

According to Berjani, rising tensions and the risk of disruptions in production or transportation are increasing uncertainty in global supply, pushing oil prices higher. Particular attention is being paid to the Strait of Hormuz, one of the most critical oil transit routes in the world. Any disruption in that corridor typically has an immediate impact on markets and translates into higher fuel costs for consumers.

Global oil prices have risen significantly following attacks by Iran on several countries in the Middle East, reportedly in response to bombings carried out by the United States and Israel.