Oil prices fall on international markets, but prices in Albania remain among Europe’s highest

Crude oil prices have fallen for the fourth consecutive day on international markets, while signals of more stable supply have eased concerns about an immediate disruption to exports from the Middle East.

European Brent crude traded at around $101.70 per barrel, while West Texas Intermediate (WTI) stood at around $98.20.

The decline comes as Saudi Arabia’s exports recovered to more than 4 million barrels per day during September, easing pressure on the markets.

Geopolitical developments have also influenced investors’ expectations. Recent reports point to China’s diplomatic efforts with Iran to curb attacks by Houthi militants in the Red Sea, raising hopes of easing tensions and stabilizing supplies.

However, the international picture contrasts sharply with the situation in Albania.

On the domestic market, a liter of diesel sells for around 219 lek, or approximately 2.40 euros, placing Albania among the countries with the highest fuel prices in Europe.

The difference becomes even more pronounced when the price is compared with citizens’ incomes. In Albania, a liter of diesel represents around 3.56% of daily per capita income, calculated according to purchasing power—the highest level in Europe.

In Denmark, where a liter costs around 2.60 euros, its share of income is approximately 1.06%, while in Norway it falls to 0.8%. The European average is around 1.36%, while the average for European Union countries is approximately 1.14%.

Albania also ranks among the highest in the region. Kosovo follows at around 3.1% of daily income, while the share is lower in North Macedonia and Montenegro.

Part of the price at the pump is also linked to the tax burden. In addition to excise duty and VAT, Albania applies a circulation tax of 27 lek per liter and a carbon tax of 3 lek per liter.

Thus, while international markets are seeing some relief in oil prices after four days of declines, Albanian consumers continue to face one of the highest costs in Europe, both in absolute terms and relative to income.

And despite the price having exceeded projected levels, no new measures to ease the burden on consumers have been taken so far.