The government intervenes in the fuel market, introducing tax cuts and price controls

The Minister of Economy and Innovation, Delina Ibrahimaj, announced that the government has decided to revive the Transparency Board to monitor fuel prices in response to recent market increases.

In an interview with Top Story, she also announced a 20 percent reduction in the fuel excise tax, from the current level of 39.6 lek per liter. Both measures will be urgently submitted for approval by the Council of Ministers.

The minister explained that the price calculation mechanism will remain based on the international Platts market, including taxes and a set profit margin: specifically, 3 lek per liter for wholesale sales and 12 lek per liter for retail sales.

These prices will act as a ceiling, above which trading will not be permitted, and violations will incur penalties.

Ibrahimaj noted that since the onset of the conflict in the Middle East, the government has established a task force to monitor the market, and so far no cases of abuse by companies have been identified.

She also pointed out that while international market prices have risen by about 80 percent, domestic market prices have increased by only 24 percent. According to the minister, company profit margins are estimated at 8–9 percent, a level she considers acceptable.

Additionally, she stated that work is underway to create a public entity responsible for ensuring the country’s mandatory fuel reserves.

"KORCA BOOM"