Fuel in Albania is among the most expensive, 2.6 times higher than the European average

Fuel in Albania is among the most expensive in Europe, but for Albanian consumers the real cost is even higher when the price of fuel is measured against income.

One liter of fuel in Albania requires a much larger share of daily income than in most European countries, making it significantly more expensive to fill a vehicle relative to income.

The price of one liter of fuel in Albania has reached 229 lekë (€2.46), ranking the country third in Europe, after Denmark at €2.60 and Norway at €2.56. In the region, fuel has reached nearly €2 in Serbia, €1.87 in Montenegro, €1.76 in Bosnia and Herzegovina, €1.87 in Montenegro, €1.85 in Kosovo, while the lowest price is in North Macedonia, at €1.64.

The European average price in the countries included in the comparison is around €1.94 per liter.

But the price at the pump is not the only indicator that should be considered. A liter of fuel costing €2.46 has a completely different impact on an Albanian, a Dane or a Norwegian because of the major differences in income.

To measure this difference, the price of fuel, based on fuel prices published by Global Petrol Prices, was compared with per capita income published by the IMF for 2026, measured according to purchasing power parity (PPP).

This indicator takes into account differences in price levels between countries and is used to make a fairer comparison of economic standards and what citizens can buy with their income.

In Albania, per capita income based on purchasing power is around 25.2 thousand international dollars per year. Daily per capita income is around 69.2 dollars, while one liter of fuel represents 3.56% of daily income, the highest rate in Europe. (See the chart: The percentage of daily income required to buy one liter of fuel.)

A Dane, in the country where fuel is most expensive in absolute terms, needs 1.06% of daily income to buy one liter of fuel, while daily per capita income is 245 international dollars, or nearly 10 times higher than that of an Albanian citizen.

In Norway, which has the third-highest per capita income in Europe, according to purchasing power, after Ireland and Luxembourg, 0.8% of daily income is required.

Across all the European countries included in the analysis, the average share of daily income required to buy one liter of fuel is 1.36%. Thus, for an Albanian citizen, buying one liter of fuel represents around 2.6 times more daily income than for the average European citizen, and all European countries are included in this calculation.

If the comparison is made only with European Union countries, which have higher per capita incomes than the rest, the average is 1.14%. This means that an Albanian must spend around 3.1 times more of their daily income to buy one liter of fuel than the average EU citizen.

In the region, relative to purchasing power, fuel is most expensive after Albania in Kosovo, where 3.1% of daily income measured according to purchasing power is required, making it the second-most expensive in Europe. Fuel in Kosovo is cheaper than in Albania, at €1.85, but Kosovo has daily income of nearly 60 international dollars, which is 14% lower than in Albania.

The ranking continues with Bosnia and Herzegovina (2.66%) and Serbia (2.09%). Fuel is cheapest relative to income in North Macedonia, which has the lowest price both in absolute terms and in Montenegro, at 1.89% and 1.88%, respectively.

Taxes weigh on pump prices in Albania

Meanwhile, Albania continues to have the highest fuel prices in the region because of the heavy tax burden, which accounts for nearly 50% of the price, and the lack of fiscal measures.

In all the countries of the region, only excise duty and VAT are added to the basic price of fuel. In some regional countries, excise duty is 2% lower. In North Macedonia, VAT on fuel and gasoline is 18%, but it was reduced to 10% during the period of rising prices.

Kosovo also applies an 18% VAT rate.

VAT in Montenegro is 21%, but this country imposes only two taxes on fuel—VAT and excise duty—which was recently halved as a measure to cushion prices.

In Serbia, VAT is 20%, while excise duty stood at 59.5 lekë per liter before the war began. But immediately after the conflict began in the Middle East, Serbia reduced excise duty by 25%. The measure was reactivated several weeks ago as well.

In Albania, in addition to the high excise duty of 39.4 lekë per liter, 20% VAT and the lack of fiscal measures, two other additional taxes are also applied to the price of fuel—taxes that are not applied in the countries of the region: the circulation tax of 27 lekë per liter and the carbon tax of 3 lekë per liter.

Albania without relief measures for fuel

Fuel in Albania has reached 229 lekë per liter, while gasoline has risen to 219 lekë, reaching new record levels and increasing pressure on consumers and businesses.

According to the data, fuel prices are rising while Albania has not taken new measures to ease the impact on citizens. Meanwhile, the mechanism envisaged for reducing excise duty by 20% remains limited in its implementation.

Under the scheme, the 20% excise-duty reduction was activated when fuel exceeded 220 lekë per liter and gasoline exceeded 200 lekë per liter, but the decision to apply it was linked to the functioning and decision of the Board./Monitor