The board raised the price of diesel by 224 lek, Konfindustria reacts: Review the fuel taxation policy

After the diesel price was raised by 224 lek, Konfindustria called on the Albanian government to intervene urgently in the fuel market, demanding a full review of fiscal and regulatory policies.

Konfindustria stated that “Albania is the only country in the region that has not taken any tangible measures to ease the fuel crisis,” adding that “intervening with only a 20% reduction in excise duty, and only when the diesel price reaches 220 lek/liter, is insufficient and meaningless.”

Assessments indicate that a 30% increase in fuel prices could lead to inflation above 6% and a reduction in GDP of 2.8–3%.

Full statement:

Konfindustria, evaluating the severe economic consequences amid the dramatic worsening of the Gulf crisis, calls on the executive branch to act without delay to fully revise the current fiscal and regulatory policy in the fuel market. Economic modeling for Albania shows that a 30% increase in current fuel prices would create at least 6% inflation and a 2.8–3% decline in GDP. This clearly creates a risk of transitioning into an economic recession during 2026 and beyond. First, a reduction of the fiscal burden on fuels and annual vehicle taxes is required, at least to the current regional average.

Albania is the only country in the region that has not implemented any tangible measures to ease the fuel crisis. Intervention with only a 20% reduction in excise duty, and only when the diesel price reaches 220 lek/liter, is insufficient and meaningless. The widening cost gap of fuels compared to competing countries in the region, amid the crisis, significantly increases the risk of bankruptcies for industries, local production, businesses, and creates multiple inflationary pressures for citizens.

Second, the process of transforming the Transparency Board into a permanent professional Fuel Regulatory Authority should begin to combat speculation in today’s cartelized market. Third, Konfindustria supports the proposal to create a state-capital operator in both wholesale and retail fuel markets.

The strategic fuel market, with an annual real turnover of nearly 2 billion dollars, accounts for almost 10% of GDP.

“KORÇA BOOM”