Albania has the most expensive fuel in Europe according to purchasing power, double that of the region

Compared to other countries in the region, the burden is at least twice as high.

Albania turns out to be the country with the most expensive fuel in Europe when the price of diesel is compared with citizens’ incomes.

Monitor has processed data on income per capita in dollars for 2026 according to the publication of the International Monetary Fund and the current diesel price according to Global Petrol Price.

Average income per capita in Albania for 2026 is 12,000 dollars, or about 33 dollars per day, according to the IMF’s World Economic Outlook. One liter of diesel was sold yesterday in Albania at around 200 lekë, or 2.4 dollars, based on the current exchange rate.

As a result, an Albanian citizen would currently need about 7.2% of their daily income to buy one liter of diesel.

According to data processed by Monitor, based on figures from the IMF and Global Petrol Price, this is the highest share among the European countries included in the analysis.

Compared with other countries in the region, the burden is at least twice as high. In Serbia, one liter of fuel represents about 3.7% of daily income, in Montenegro about 3.6%, while in Romania about 2.8%. Even in Greece, one of the most expensive fuel markets in Europe in nominal terms, the share of one liter of diesel relative to income is around 2.5%.

The region also has lower fuel prices in nominal value, on average 15–30% lower than in Albania, especially in Kosovo and North Macedonia. Meanwhile, the country’s income per capita remains among the lowest in the region, having only recently surpassed North Macedonia, with Kosovo still having the lowest.

In the more developed European economies, the difference is even larger due to higher incomes, with fuel in Albania being three to six times more expensive in relative terms according to purchasing power.

In countries such as Italy, France, Germany or Belgium, one liter of fuel usually represents less than 2% of the average daily income, while in some Northern European countries the share is even lower. The Netherlands has the most expensive diesel in Europe in absolute value, but a citizen there needs only about 1.1% of their daily income to buy one liter, or seven times less than in Albania.

Albania, meanwhile, has one of the lowest levels of income per capita in Europe, while fuel prices are often similar to or only slightly lower than those in European Union countries. This means that the real burden of fuel on household budgets and on transport costs for businesses is much higher.

According to data from Global Petrol Price, even in nominal value Albania ranks fifth in Europe for diesel prices, after the Netherlands, Denmark, Norway and Switzerland, with the latter having fuel only 10 to 30 cents more expensive than in Albania.

Fuel is one of the main components of transport and logistics costs in the economy. In countries where its share of income is high, the impact spreads further to the prices of goods, the cost of transporting goods and the daily expenses of households.

The high level of taxes remains one of the main reasons for the expensive prices in the country, where around 60% of the price consists of taxes (excise: around 37–38 lekë/liter; circulation tax: around 27 lekë/liter; carbon tax: around 3 lekë/liter; VAT: 20% of the final price, etc.).

Fuel prices rise quickly, but decreases are not reflected as fast.

Very rapid reactions in price increases when fuel becomes more expensive on international markets, and slow reductions when prices fall globally, remain another important reason.

According to Monitor’s reports on the ranking of the largest companies by profits, for example in 2019 the profit margin for the sector increased by 0.5–1 percentage points. Market operators explained this with the downward trend in fuel trading prices in the country that year.

Price decreases in international markets are not reflected at the same pace and time in the domestic market, which leads to an increase in profit margins. The opposite happens when prices increase, when the reflection is faster, as recent days have shown.

The same trend was also observed in 2024, when some companies saw a slight improvement in profit margins. Operators again acknowledged that when prices are low, companies have more room to maneuver with prices, as the reflection of price decreases from global markets is slower. In 2024, prices had a downward trend, favoring importing and trading companies.

“KORÇA BOOM”