Projections / How high could the maximum increase in fuel prices in Albania reach?

The crisis created by tensions in the Middle East is expected to be immediately reflected in the Albanian fuel market, where representatives of the Hydrocarbons Association warn of a 20 lek per liter increase within two days. They also forecast a maximum increase of up to 30–40 lek per liter in the coming days, but add that these prices will be temporary, depending on how the conflict unfolds.

Albania’s oil market depends entirely on imports, and projections of an increase of up to 30–40 lek per liter are based not only on the closure of the Strait of Hormuz, through which nearly 20% of the world’s oil passes, but also on attacks on refineries in Saudi Arabia, leading to higher import costs and uncertainty over international supplies.

Meanwhile, association representatives also explain why the price increase is reflected immediately and is not linked to the security reserve. According to them, the increase occurs daily in wholesale prices, and it is precisely this quantity that enters the market, which causes the rise to be immediately applied to retail prices as well. The same representatives say that storage facilities are located in free economic zones and are protected on the stock exchange. “The reserves are physical and not in currency. Activating them at this moment could even lead to company bankruptcies,” the association representatives state.

The legislation in force stipulates that the security reserve serves to cover national consumption needs during periods of crisis and extraordinary situations within the country’s territory. The law also specifies that oil refineries and wholesale trading companies of oil, natural gas, and their by-products are required to maintain security reserves equivalent to 30 days of average sales, a quantity calculated based on the actual data and results of the previous year’s activity.

“KORÇA BOOM”