The Most Expensive Diesel in the Region, with No Relief Measures! From March to July, Albanians Spent €80 Million More for the Same Consumption

In theory, when fuel prices rise, drivers tend to limit their use of cars. In Albania, this relationship appears to be much weaker.

The lack of developed public transport alternatives, especially outside Tirana and for intercity travel, while Albania is the only country in Europe without trains, makes using a vehicle a necessity that can hardly be reduced even when diesel prices rise sharply.

Import data for the March–July 2026 period clearly shows this. Around 305.8 thousand tonnes of fuel were imported over the five-month period, just 1.2% less than in the same period last year, when the amount was around 309.6 thousand tonnes.

The slight decline in imports came mainly in April and May, when the quantities brought into 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 rose by 4.6%, and in July by 6.9%, also influenced by the seasonal increase in travel and the tourist influx.

However, while consumption in terms of volume changed little, the bill paid by Albanians was much higher.

Monitor calculated that, assuming the imported fuel was sold for consumption in the domestic market, around 71.3 billion lekë was spent on the quantities imported from March to July, based on the average monthly price of diesel on the domestic market.

For the same quantity of fuel, if the price had remained at last year’s average level of around 175 lekë per litre, the bill would have been approximately 63.7 billion lekë.

The difference amounted to around 7.6 billion lekë, or approximately €80 million more, paid solely as a result of higher fuel prices.

The effect was stronger in the months when the average price of diesel remained high. In March, the average price was 198.4 lekë per litre; in April, it rose to 209.5 lekë, while in May it stood at 197.5 lekë. June brought temporary relief, with the average falling to 182.4 lekë, but in July the price rose again to 195.6 lekë per litre.

In July alone, around 75.8 thousand tonnes of imported fuel corresponded to approximately 90.2 million litres (one tonne is calculated as approximately 1,190 litres).

At the average price of 195.6 lekë per litre, the bill is estimated at around 17.6 billion lekë, compared with 15.8 billion lekë, which the same quantity would have cost at a price of 175 lekë per litre.

In April, when the average price reached the highest level of the period, at 209.5 lekë per litre, imports fell sharply. Nevertheless, the contraction in consumption was not sufficient to offset the price increase. For an estimated 61.9 million litres, the bill was around 13 billion lekë, more than 2.1 billion lekë higher than it would have been at last year’s average price.

The Most Expensive Diesel in the Region, with No Relief Measures

Albania’s diesel is 30% more expensive than in the region because of its tax burden.

Despite its higher tax burden compared with other countries in the region, Albania has used a more limited relief package to cushion the increase in fuel prices.

Several neighbouring countries intervened directly by reducing excise duties and VAT or by limiting trading margins.

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

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

The measure was used only at the beginning of April, when diesel reached 224 lekë per litre, while prices subsequently remained below the threshold that triggered the reduction.

The high tax structure continues, meanwhile, to account for a considerable share of the final fuel price. Excise duty, the circulation tax, the carbon tax and VAT together amount to more than 100 lekë per litre of the diesel price, limiting the extent to which declines in international prices can be fully passed on to consumers.

So far, the biggest beneficiary of this situation has been the government, which has collected more VAT as a result of higher prices, while spending only 37 million lekë when the price was above 220 lekë for several days in April—the level above which the 20% excise-duty reduction is activated. / Monitor