At the height of the price crisis, fuel is expected to face an additional €40 million in annual fiscal costs as a result of the introduction of a new fee. The government assumes that it will be set at 3 lekë per liter.

Revenue from the new fee on fuel will be used to finance the creation and management of the security reserve of crude oil and its by-products.

However, increasing the fiscal burden on fuel will further raise the final retail price for consumers. The government itself acknowledges the impact on the increase in the final retail price for consumers.

In the explanatory report accompanying the draft law “On the creation, maintenance and management of crude oil and its by-products,” the government assumes that if the fee for the oil security reserve is set at 3 lekë per liter, it will generate 3.75 billion lekë in annual revenue.

The revenue will be used to purchase reserve fuel, cover storage costs and other expenses.

However, the draft’s explanatory report clarifies that the level of 3 lekë per liter is only an assumption, as the final amount will be approved by a decision of the Council of Ministers, based on proposals from the responsible ministries.

The reserve is expected to be created over a five-year period, bringing the financial impact of revenue collection from the fee to approximately €200 million.

“To finance the creation, maintenance and management of the security reserves of oil and its by-products, the introduction of a fee for this purpose has also been envisaged.

The fees for creating and maintaining the security reserve, applied to quantities of hydrocarbon energy products subject to the obligation to pay excise tax, in accordance with Law No. 61/2012, dated 24 May 2012, ‘On excise duties in the Republic of Albania,’ as amended, will be determined annually by a decision of the Council of Ministers.

All these activities will entail additional costs for the public sector to cover expenses related to the creation, storage, maintenance and inspection of the security reserves, as well as other regular activities of the authority.

Securing the funds will require, among other things, the introduction of a fee to be applied to quantities of hydrocarbon energy products. This will increase the value along the chain of financial charges and, ultimately, the final sale price for consumers,” the explanatory report states.

The introduction of another fee on fuel is expected to increase the final retail price by a further 3 lekë per liter.

Currently, fuel in the country is subject to several taxes and fees, including VAT, excise duty, the circulation tax, the carbon tax, the scanning fee, municipal taxes and the relicensing fee.

Taxes account for 53% of the final fuel price, or an estimated 90 to 100 lekë of the final price. Compared with the countries of the region, Albania has the highest fiscal burden on fuel.

In countries such as North Macedonia, Serbia, Montenegro and Kosovo, only excise duty and VAT are calculated on the wholesale price of fuel.

If fuel products were relieved of the fiscal burden, domestic consumers would pay prices similar to those paid in countries across the region.

High fuel prices: Albanians pay twice as much in taxes per liter as the region, while other countries are reducing them

The cost of creating the reserve reaches up to €42 million a year

According to indicative data, the volume of the security reserve is estimated at between 43,600 and 49,000 tons a year, including crude oil and its by-products—diesel, gasoline, jet fuel and liquefied gas.

One of the scenarios calculated by the government involves creating a reserve of 43,600 tons of fuel. Crude oil would account for the largest share, at 17,400 tons. Diesel would amount to 13,000 tons and gasoline to 8,720 tons. Smaller quantities of liquefied gas and jet fuel are also envisaged.

The government estimates that the cost of purchasing the fuel alone will be €39.4 million a year, while storage will cost €2.6 million a year.

The oil reserve will be managed by a State Authority. The cost of establishing the authority is estimated at 60 million lekë, while its operating costs are estimated at 220 million lekë a year, according to the scenarios presented in the explanatory report.

The Hydrocarbons Association previously raised concerns about how the government plans to finance the new model proposed for creating the oil security reserve.

The Hydrocarbons Association says that the fee to finance the creation of the reserve should be considered a hidden tax, since it does not involve a service provided by the state to companies, but rather the financing of a public obligation through a fee imposed on fuel.

“Hidden tax” on fuel for the security reserve will raise prices, government admits

The draft law also gives the state-owned company, the Authority for the Oil Security Reserve, the right to buy and sell fuel without public procurement, that is, without a tender.

This arrangement is justified by the specific nature of how the reserve operates. The authority’s right to purchase and sell fuel without public procurement is set out in one of the points of Article 10 of the draft law “On the creation, maintenance and management of the minimum security reserves of crude oil and its by-products.”

The oil reserve will be provided through a “concession”; services will be contracted without procurement

Cost data

Indicative minimum reserve fee: 3 lekë per liter per year, until the reserve is fully created, covering the purchase of hydrocarbons and storage.

After the reserve has been created, only its storage costs will be paid. The authority’s annual revenue from the fee: 3.4–3.6–3.75 billion lekë per year.

This amount will fully cover the authority’s operations and the securing of the reserves, assuming they are created over a five-year period, as well as the costs of maintaining the stored product.

Based also on the opinion of the Ministry of Finance, the one-time initial cost of developing a system for collecting the fee will be 20–30 million lekë. The annual maintenance cost of the system will be 8–12 million lekë.

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Following its reinstatement three months after it was dissolved, the Transparency Board has set new fuel prices.

According to the decision, diesel, which until today was sold for up to 229 lek, may not be sold for more than 219 lek per liter at retail, while the wholesale price has been set at 207 lek per liter.

For gasoline, which was sold today for 225 lek, the Board has set a maximum retail price of 195 lek per liter and a wholesale price of 183 lek per liter.

The new prices take effect today, September 19, at 16:00, and will remain valid until the Board’s next meeting, when further changes may be set.

Announcement:

The Board for Transparency and the Temporary Limitation of Wholesale and Retail Prices of Oil and Gas Byproducts, pursuant to Council of Ministers Decision No. 711, dated 16.09.2026, “On declaring a special situation in the hydrocarbon market,” in implementation of Article 21/3 and Article 21/5 of Law No. 8450, dated 24.2.1999, “On the processing, transportation and trading of oil, gas and their byproducts,” as amended, as well as Normative Act No. 1, dated 3.4.2026, “On an addition to Law No. 61/2012, ‘On excise duties in the Republic of Albania,’” as amended, held its first meeting.

Accordingly, on September 19, 2026, the Transparency Board decided:

✅ The retail price of SSH EN 590 standard diesel shall be no more than 219 lek per liter, while the wholesale price shall be no more than 207 lek per liter.

✅ The retail price of SSH EN standard gasoline shall be no more than 195 lek per liter, while the wholesale price shall be no more than 183 lek per liter.

🗓️ The prices set by the Board will take effect today, the 19th, at 16:00, and will remain valid until the Board’s next meeting, when changes in sales prices will be reflected.

⚠️ We draw the attention of every wholesale and retail operator of oil byproducts to the obligation to comply with this decision.

🚫 If violations by any operator are identified, its operations will be suspended.

🛢️ The Ministry of Economy and Innovation, together with the Ministry of Finance and the Ministry of Infrastructure and Energy, is committed to protecting the interests of Albanian consumers and upholding the principles of fair competition in the market.

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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

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The increase in fuel prices since the beginning of March, after the escalation of conflicts in the Middle East, has eroded the incomes of vehicle users, public transport operators, and with a chain effect, all others who have faced higher transportation costs.

Today, a liter of diesel costs 219 lekë and gasoline 205 lekë, from 175 which were the prices until March.

The biggest winner appears to be the budget, which has collected more revenues from the diesel price hike, through the 20% value added tax, which is charged to the consumer being added to the final retail price.

According to data from the Customs Directorate, processed by Monitor, from March, when the price increase started, until July, the budget has collected from the import of diesel and gasoline, through customs tax, excise, and VAT, about 20.2 billion lekë, an increase of 9.1% compared to the same period a year earlier, or nearly 1.7 billion lekë more (about 18 million euros).

For the same period, imports were 387 million liters, or 0.6% less than the same period a year earlier, an indication that the revenue increase is entirely the effect of the price hike. Almost 80% of imports are diesel and the rest gasoline.

In the first two months of the year, a liter of diesel was customs cleared at about 50 lekë per liter. The price jumped in March to 81.4 lekë and peaked in April at 99 lekë.

After a temporary decline in April, July brought another increase to 83 lekë. The entire price difference was transmitted into more revenue from value added tax.

Gasoline also rose to 74 lekë per liter in May, from 45 lekë in February. (see charts: Value per liter of imported diesel and gasoline).

Although it has collected about 18 million euros more in revenues just from the diesel price hike, the Albanian government, which taxes diesel more than any other country in the Balkans, has not returned a portion back to citizens through fiscal relief, unlike other countries in the region.

Due to the high fiscal burden, diesel in Albania is 41% more expensive than in North Macedonia, which is the cheapest in the region, and 17% more than in Serbia, the second most expensive in the region after us.

Diesel in Albania is 30% more expensive than the regional average of 1.77 lekë per liter, according to Monitor’s calculations.

If for all regional countries a simple structure for calculating the diesel price is applied (base price + excise and on this amount VAT is calculated), in Albania, besides the excise of 0.37 euros per liter and 20% VAT, two additional taxes are applied on the diesel price, the circulation tax (27 lekë per liter) and the carbon tax (3 lekë per liter).

This makes the fiscal structure in Albania significantly heavier, accounting for about 50% of the price or 100 lekë per liter.

Unlike other regional countries, which have implemented numerous fiscal relieves, the interventions of the Albanian government have been minimal.

In March, a decision was approved to reduce the excise on fuels by 20% if the diesel price exceeded the value of 220 lekë per liter at retail, and for gasoline the measure applies if the price exceeds 200 lekë per liter.

According to official sources, the measure has been used twice and the financial effect was estimated at 37 million lekë or about 400 thousand euros.

March-July, Albanians spent 80 million euros more on diesel, for the same consumption

Unlike the government, which has collected more revenues, consumers have faced a heavy financial burden for fuel expenses.

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

Monitor has calculated earlier that, assuming the imported fuels have been consumed in the domestic market, for the quantities imported from March to July, about 71.3 billion lekë were spent, based on the average monthly diesel price in the domestic market.

For the same amount of fuel, if the price had remained at last year’s average level of about 175 lekë per liter, the bill would have been about 63.7 billion lekë.

The difference reaches about 7.6 billion lekë, or approximately 80 million euros more, paid solely due to the higher fuel price. Almost a quarter of this amount has gone to the state budget, through increased VAT payments./Monitor

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The powerful explosion at the “Eida” fuel station in Tirana’s Brryli area caused considerable damage. The incident occurred on Wednesday morning.

A one-story building nearby reportedly collapsed, while three fuel station workers were injured.

The explosion is believed to have been caused by a gas cylinder at the fuel station, where vehicles are refueled with gas. At the time of the incident, a vehicle was being refueled with gas.

The three injured workers were transported to hospital, where they are receiving medical treatment.

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In a video posted on social media, Democratic Party MP Jorida Tabaku commented on the high price of fuel in Albania and its direct impact on household finances and businesses.

According to Tabaku, rising fuel prices are reflected at every level of the economy, increasing transport costs, the prices of agricultural products and business expenses.

“The price of fuel is the main reason for rising prices. Today, we all pay more, from transporting children to the product on the farmer’s farm and every business that raises prices because of fuel costs,” the Democratic MP said.

Tabaku argued that the high price is linked not only to developments in international markets, but mainly to domestic factors. She listed the heavy tax burden as the first cause.

“Around 60% of the price of fuel consists of taxes that Albanians pay at the pump for every liter. This places the price of fuel in Albania among the highest in the region, and even among the highest in Europe,” Tabaku said.

Another problem, she said, is the concentration of the market and the fact that certain companies control several links in the supply and distribution chain.

“The second reason is related to the market and monopolies, and to the fact that a large portion of these businesses own every link in the chain,” the Democratic Party MP stressed.

Tabaku also criticized the lack of state control and oversight, saying that fuel has become a luxury product and that prices are pushing citizens to fill up outside the country.

“The lack of state control and oversight has turned fuel in Albania into a luxury product. This retail trading system has a stranglehold on the economy and its key sectors,” she said.

In conclusion, Tabaku called for the current system to be changed, saying that it burdens citizens, farmers, parents and businesses.

“This is the system we must change. It is the system from which Albanian citizens, farmers and parents who pay more for fuel suffer. This system must change, and it is one of the reasons why citizens have been protesting for more than 100 days,” Tabaku concluded.

STATEMENT:

The price of fuel is one of the main reasons for rising prices. Today, we all pay more: from transporting children to the product on the farmer’s farm and every business that is forced to raise prices because of the increased cost of fuel.

This increase is not so much imported as it is caused by domestic factors.

First, there are the taxes. Around 60% of the price of fuel consists of taxes, placing the price of fuel in Albania among the highest in the region, and even among the highest in Europe.

The second reason is related to the market and monopolies, as well as to the fact that a large portion of these businesses own every link in the chain.

The third reason is the lack of state control and oversight, which has turned fuel in Albania into a luxury product and forced Albanians to fill up across the border.

This is the system we must change. It is the retail trading system from which Albanian citizens, farmers and every parent who pays more for fuel suffer.

This system has a stranglehold on the economy and its key sectors. It must change, and this is one of the reasons why citizens have been protesting for more than 100 days.

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Public transport operators have reiterated their concern over the financial difficulties they are facing, caused by high fuel prices and a decline in the number of passengers.

In a second letter sent during August 2026, the National Urban Transport Association addressed the ministries of Finance, Economy, Infrastructure and Energy, Local Government, as well as the Tirana Municipality, requesting intervention over the situation that has arisen.

According to the operators, the compensation received for March, April and May is not enough to guarantee the normal continuation of the service during August. They emphasize that operating costs have increased significantly due to rising fuel prices.

The letter to the institutions argues that fuel is among the main expenses in public transport operations.

Because of the vehicles’ high daily consumption, any increase in, or continued high level of, diesel prices directly affects operators’ costs.

Meanwhile, public transport fares have remained unchanged, and companies must continue providing services according to the specified routes, frequencies and capacities. For this reason, covering fuel expenses has become increasingly difficult.

Operators assess that the measures taken so far to provide compensation have been essential to maintaining financial balance and continuing the service, but the problem that led to this support has not been resolved.

“Fuel continues to have a high price and to significantly burden companies’ operating costs. If this situation continues during August 2026 and in the following months, without a financial compensation mechanism, operators will face serious difficulties in maintaining the service at its current level,” the letter states.

The association warns that the inability to continuously cover fuel expenses and other operating costs could have direct consequences.

Among the risks identified is the difficulty of guaranteeing the normal continuation of public transport.

Another possible consequence could be a reduction in the number of vehicles operating.

Operators also warn of reduced bus frequencies on routes and longer waiting times for citizens.

The situation could also create difficulties in meeting companies’ financial and operational obligations.

In addition, necessary investments and interventions to maintain the fleet could be postponed.

According to them, there is also a risk of a deterioration in the quality and standards of the service provided to citizens.

Under these conditions, the Urban Public Transport Association is requesting that the fuel compensation scheme continue through September 2026 and the following months, as long as diesel prices and the economic conditions that justified this support remain high.

The association considers the continuation of compensation an essential measure for preserving the current capacity of public transport, avoiding reductions in vehicles and frequencies, and protecting the quality and continuity of service to citizens.

Operators are seeking the institutions’ commitment to approving financial compensation for the June-July-August 2026 period and the following months, until fuel prices and the economic conditions of the activity return to normal.

The association and the operators it represents declare that they are ready to provide the responsible institutions with any economic, financial or operational data needed to assess the real impact of the current diesel price on the operation of public transport.

In the letter sent on August 12, 2026, the operators had also raised concerns over their inability to cover fuel costs and had requested an extension of the compensation period.

The government’s previous decision provides for compensating public transport operators with 50 lekë for every liter of fuel consumed during March, April and May 2026.

Operators are requesting that this measure be extended for another 4 months. Meanwhile, the price of diesel in the country has remained above 210 lekë per liter for weeks.

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According to MINTI’s announcement, one liter of oil/diesel during these two days will cost 1.37 euros.

Meanwhile, the price of gasoline has been set at 1.35 euros per liter, while gas will be sold at 0.67 euros per liter.

The announcement states that these prices will take effect from 10:00.

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