Konfindustria has called on the government to intervene immediately in the fuel market following what it describes as a sharp and unjustified increase in prices during the last 10 days of July and thereafter.

The organization has proposed four urgent measures to ease the burden on citizens and businesses.

First, Konfindustria is calling for the fiscal burden on fuel to be reduced by at least 15%, estimating that this would bring about a reduction of at least 20 lek per liter in the retail price.

According to the organization, countries such as Italy and Germany have already implemented similar tax reductions, with a direct impact on the market.

It is also calling for the reinstatement of the Transparency Board, arguing that any possible tax cuts must be fully reflected in the prices paid by citizens and businesses rather than ending up as additional profits for market operators.

Konfindustria considers the Albanian fuel market to be a typical monopolistic and oligopolistic market.

The organization is calling for immediate inspections of the quality of the fuel sold in the country. According to Konfindustria, there are indications that significant quantities of fuel below the Euro 3 standard have entered the market, endangering public health, the environment, vehicles and state revenues.

Konfindustria is calling for state institutions and SPAK to become involved in the fight against fuel smuggling, stressing that it causes damage worth hundreds of millions of euros to the state budget.

As an example, it cites the Kosovo authorities’ crackdown on fuel-smuggling routes from Albania, where, according to the organization, shipments filled with water were discovered at Kosovo’s customs.

The statement emphasizes that retail diesel prices in Albania, which currently fluctuate at around 2.15–2.20 euros per liter, remain significantly higher than in the countries of the region and in a considerable number of European Union countries.

According to Konfindustria, this situation is placing heavy pressure on industry, domestic production and household finances.

Konfindustria’s statement:

Konfindustria, prompted by the sharp and unjustified increase in fuel prices during the last 10 days of July and thereafter, is calling for the government to take immediate regulatory action in four areas.

First, it is calling for a reduction of at least 15% in the tax burden on fuel. This should result in a reduction of at least 20 lek per liter in retail prices. Italy and Germany immediately implemented 15–20% cuts in fuel taxes, with a direct effect on the market.

Second, it is calling at the same time for the re-establishment of the Transparency Board so that any possible tax cuts are passed on in full to citizens and businesses, rather than to fuel operators. Albania’s fuel market is a typical monopoly and a pure oligopoly.

Third, it is calling on the institutions to immediately inspect the quality of the fuel circulating on the market. There is information that large quantities of fuel below the Euro 3 standard have been placed on the market, with serious consequences for health, the environment, vehicles and the state budget.

Fourth, it is calling for extraordinary intervention by state institutions and SPAK to fight fuel smuggling, which causes hundreds of millions of euros in damage to the state budget. The Kosovo authorities’ crackdown on fuel-smuggling transit routes from Albania, which were found to be filled with water at Kosovo’s customs, is clear evidence.

Retail diesel prices in the domestic market have long stood at 2.15–2.2 euros per liter, significantly higher than in the countries of the region and many EU states. This is causing an additional and severe blow to industries, domestic production and citizens.

The post Fuel price increase is unjustified, government must intervene immediately / Konfindustria: Restore the Transparency Board, SPAK must investigate smuggling appeared first on Albeu.com.