The most expensive oil in the region, Albanians pay 80 million euros more - the government did not take any relief measures

In theory, when the price of fuel increases, drivers tend to limit their car use. In Albania, this relationship appears much weaker.

The lack of developed public transportation alternatives, especially outside Tirana and for intercity movements, as Albania is the only country in Europe without trains, makes the use of a vehicle a necessity that can hardly be reduced even when the price of oil increases sharply.

Import data for the period March-July 2026 clearly shows this. In five months, about 305.8 thousand tons of fuel were imported, only 1.2% less than in the same period last year, when the amount was about 309.6 thousand tons.

The slight decline in imports came mainly from April and May, when quantities entering the country were 14.3% and 7.3% lower, respectively, than a year earlier. In March, imports increased by 2.8%, while the trend changed significantly in the summer.

In June they increased by 4.6% and in July by 6.9%, also influenced by the seasonal increase in movements and tourist flow.

But, while consumption in quantity changed little, the bill paid by Albanians was much higher.

"Monitor" has calculated that, assuming that imported fuels have been consumed in the domestic market, about 71.3 billion lek were spent on imported quantities from March to July, based on the average monthly price of oil in the domestic market.

For the same amount of fuel, if the price had remained at last year's average level of around 175 lek per liter, the bill would have been around 63.7 billion lek (see chart).

The difference amounts to about 7.6 billion lek, or approximately 80 million euros more, paid solely as a result of the higher price of fuel.

The effect was strongest in months when the average price of diesel remained at high levels. In March, the average price was 198.4 lek per liter, in April it increased to 209.5 lek, while in May it was 197.5 lek. June brought a temporary relief, with the average falling to 182.4 lek, but in July the price increased again to 195.6 lek per liter.

In July alone, about 75.8 thousand tons of imported fuels correspond to about 90.2 million liters (1 ton is calculated as about 1190 liters).

With an average price of 195.6 lek per liter, the bill is estimated at around 17.6 billion lek, compared to the 15.8 billion lek that the same amount would cost at a price of 175 lek per liter.

In April, when the average price reached the highest level of the period, at 209.5 lek per liter, imports fell significantly. However, the contraction in consumption was not enough to compensate for the increase in price. For about 61.9 million liters estimated, the bill was about 13 billion lek, over 2.1 billion lek more than at the average price last year.

The most expensive oil in the region, no easing measures

Albania has oil 30% more expensive than the region, due to the fiscal burden.

Despite the higher fiscal burden, compared to other countries in the region, Albania has used a more limited relief package to cushion the rise in fuel prices.

In some neighboring countries, direct intervention was made by reducing excise duties, VAT, or limiting trading margins.

Kosovo imposed maximum limits on fuel trading margins, while North Macedonia intervened by reducing VAT and excise duties. Serbia lowered the excise duty on oil, while Montenegro also intervened by reducing excise duties.

In Albania, in addition to intervention through the Transparency Board, a 20% reduction in excise duty was also applied for a very short period, after the price of oil exceeded 220 lek per liter.

The measure was used only at the beginning of April, when oil reached 224 lek per liter, while prices were subsequently kept below the threshold that activated the reduction.

Meanwhile, the high tax structure continues to hold a significant share of the final price of fuel. Excise duty, turnover tax, carbon tax and VAT together account for over 100 lek per liter in the price of diesel, limiting the scope for the decline in international prices to be fully transmitted to the consumer.

The government has so far emerged the most benefited from this situation, having collected more VAT as a result of higher prices, while spending only 37 million lek, when the price was above 220 lek for several days in April, a level above which the 20% excise tax reduction is activated./ Monitor