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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