The next blow / A new tax on diesel is coming, you will pay more for fuel!

To cope with the reduction or shortage of diesel during difficult times, the government has once again revived the idea of creating a state fuel reserve to supply the population in such cases.

The draft law released for public consultation, titled “On the creation, maintenance, and management of security reserves for crude oil and its derivatives,” foresees a reserve sufficient for 90 days of consumption in case of need, which is expected to cost the state budget at least €520 million if storage facilities are built, or around €300 million if they are leased.

“The total amount of security reserves to be maintained in the Republic of Albania shall target at least 90 days of average daily net imports or at least 61 days of average daily domestic consumption whichever amount is greater. The security reserves needed to reach this target will be created gradually and proportionally based on an Action Plan approved by the Council of Ministers.”

Specifically, for a 90-day reserve intended to serve the population during crises, market experts estimate that a minimum of 270,000–300,000 tons of fuel would be needed worth around $300 million (approximately €260 million) at current market prices.

However, this covers only the product’s cost. Additional expenses would arise for storage such as renting depots, which experts say are not currently available for such large capacities. If they were, the rent would cost €10 per ton per month, meaning €3 million per month or €36 million per year for 300,000 tons.

Taking into account these expenses but excluding salaries, staff, and electricity the total cost could reach €300 million. If the government decided to build its own storage depots, construction would cost about $300 million (€260 million), bringing the overall bill to €520 million, excluding maintenance and personnel costs.

To cover such a high expense, the draft law foresees several funding sources such as loans, the state budget, and an additional fee that will ultimately be passed on to citizens.

“Fees for the creation and maintenance of the security reserve will apply to quantities of hydrocarbon energy products subject to the excise tax obligation.”

This means that, on top of the six existing taxes and fees already paid on fuel such as excise duty, circulation tax, carbon tax, and scanning fee, a new surcharge will be added. The exact amount is not yet determined and will be set by a decision of the Council of Ministers after the law’s approval.

“KORÇA BOOM”