Oil, 10 ALL/liter more expensive

19/01/2015 00:00

The fact that international markets have seen a much higher drop of the
fuel price than the Albanian market, has sparked debates if this is
caused by high taxes or monopolies. Top Channel makes a cross reference
of the data coming from the Customs Directory and the Institution of
Statistics, specifically about the total cost of gas, tax included, and
the final consumer price.

The cost of petrol in June, after customs fees were paid, was 168.5 ALL/l. On the same month, INSTAT says that it was sold to consumers for 183 ALL/l, leaving a 14.5 difference which was the same even in July.

But after this month, it has increased. In December, when the oil price has dropped in the international market, gas stations have sold it with 10 ALL higher than in June. If they would have kept the same profit, oil companies would have reduced the oil price with 9.6 ALL in June. But they didn’t and they kept higher profits. According to INSTAT and Customs, the 9.6 price drop was not transmitted to consumers.

However, gas sellers say that taxes are the reason why the price doesn’t drop in our market. Taxes make 60% of the total price. Except for VAT, which has been reduced in June, all others have remained the same.

Is it because of taxes, or because of market monopoly?

The chairman of the Parliamentary Commission of Economy, Erjon Brace, accused the three oil companies who he say control the oil and do not transmit the dropped price, by increasing profits abusively to 30 ALL per liter.

The Association of Fuels reacted by denying the accusations and saying that the oil price has competition as no other market, and that the real reason for the price are the government taxes. Comparing oil taxes of Albania with the other countries of the region, the Association says that the oil price is not only cheap, but even under cost, and might even damage the oil quality.

Top Channel