Oil price unjustified

Compared to the beginning of April, the price has decreased with 30 USD per barrel or with 23%. This is one of the biggest reductions in a short period of time, caused by the world economy deterioration and the concerns for a crisis return.

Beyond the causes, the oil price reduction has eased the citizens’ budgets throughout Western Europe. But the price reduction in the Albanian market, besides being delayed, is only partial. Oil price goes from 180 ALL per liter, only 5.2%, while the reduction in the stock market goes to 23%.

Importers say that the reason is the currency rate, since it is bought in USD, but calculations show that it still doesn’t justify the prices.

According to Bank of Albania, one USD costs at least 6 ALL more than April and March, which means that the cost has increased with only five percent.

If the Albanian market would reflect the complete progress of global prices, oil price should have fallen at least with 20 ALL per liter, for as long that importers haven’t had more taxes or any additional cost.

The high prices favor the government itself, which collects more revenues this way, mostly on the VAT. The citizens are those who carry more damages, since they pay a higher price.

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