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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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

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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.

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