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 5, 2026

by AEA 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.