While the global hydrocarbon market has begun to stabilize, the same cannot be said for Albania. Although international stock exchanges opened today with a significant price decrease, in our country, the price of oil and gasoline continues to be the same, reaching the figure of 216 lek.
Regarding this worrying situation, which has been ongoing for several days now, an official reaction has been made by Confindustria, which has requested the immediate intervention of government regulators in four directions.
Specifying that first, the tax burden should be reduced by at least 15%, thus bringing the impact to at least 20 lek/liter reduction in the retail price. Further, the establishment of the Transparency Board was requested, as well as an immediate control of the quality of fuels. And finally, intervention was also requested in the fight against fuel smuggling.
Confindustria’s full response:
Confindustria, taking cause from the strong and unjustified increase in fuel prices in the last 10 days of July and onwards, demands immediate regulatory intervention by the government in 4 directions.
First, a reduction of at least 15% in the tax burden on fuels is required. The above should result in at least a 20 lek/liter reduction in retail prices. Italy and Germany have immediately implemented 15-20% reductions in fuel taxes with direct effect on the market.
Secondly, it is required at the same time to re-establish the Transparency Board in order for the possible tax reduction to be fully passed on to citizens and businesses and not to fuel operators. The fuel market in Albania is a typical monopoly and pure oligopoly market.
Thirdly, institutions are required to immediately control the quality of fuels circulating on the market. There is evidence that large quantities of fuel outside the Euro 3 standards have been released on the market with serious consequences for health, the environment, cars and the state budget.
Fourth, the extraordinary intervention of state institutions and SPAK is required to combat fuel smuggling, which has resulted in hundreds of millions of euros in damage to the state budget. The crackdown by Kosovo authorities on smuggling fuel transit lines from Albania, which turned out to be filled with water at Kosovo customs, is a clear given.
Retail oil prices in the local market have long been at the level of 2.15-2.2 euros/liter, significantly higher than in the countries of the region and many EU countries. The above brings an additional strong and devastating blow to industries, local production and citizens.