Albania ranked 5th in the world for the most expensive oil price, why do we pay so much?

 Albania ranks the fifth most expensive in the world in terms of fuel prices compared to per capita income, after Moldova, India, Jordan and Morocco.

The data is processed by Monitor based on the gasoline price information provided by Global Price Petrol and the World Bank's purchasing power per capita income. The indicator measures affordability, based on the percentage of daily income it takes for one liter of fuel.

The price of petrol used for reference by Global Price Petrol was $ 1.68 / liter in Albania, at same levels to countries with a higher income per capita than Albania, such as Germany, Belgium, the Netherlands, Denmark, France, United Kingdom, Norway etc. In absolute value, Albania is the 23rd most expensive in the world.

Albanians need 5.3% of their daily income to buy one liter of fuel. Though Norway, for example, has one of the world's most expensive oil prices in absolute value (2.05 USD / liter), its citizens can afford it, as it only takes 1.3% of the daily incomes to supply the car with one liter pf fuel.

Macedonians and Montenegrins need 3.2% of their daily incomes, Serbs 3.7%, while Kosovo citizens 3.9%. Greece 2.6%, while Italy 1.8%, Bulgaria 2.4%.

In Moldova, which is the most expensive in the world for fuels, according to purchasing power, it takes 7.3% of the daily income to buy one liter of fuel.

Why do we pay so much of the oil?

The high taxes we pay for oil are the main reason why Albania has so expensive fuel prices, where 60% of the price is made up of taxes.

"Monitor" compared the oil price structure in Albania and Macedonia:

In Macedonia, according to official data, currently the oil costs 63 Macedonian dinars, or 130 Lek, while in Albania the oil costs an average of about 170 leks or about 30% more expensive than Macedonia.

The purchase price at the port is calculated similar for both countries, at about ALL 53 per liter in Albania and ALL 60 per liter in Macedonia, as there is higher transport cost due to lack of port. (one ton of oil today is sold today in stock market at around $ 600 worth)

In Macedonia, direct taxes on oil comes only by the excise, about 28 lek per liter (0.2 cents per liter) and VAT, to about 20 lek per liter (the VAT rate in Macedonia is 18 percent, and applies to a price of 30 lower than in Albania).

Unlike Albania, Macedonia does not have the fuel tax included in the oil price but takes it directly from the vehicles.

In Albania, oil is taxed as follows: Excise, ALL 37 per liter; The circulation tax, ALL 27 per liter; Carbon tax, ALL 3 leks per liter. In addition, last year's costs included the marking and scanning fees, from ALL 1 per liter each. The total VAT amounts to 28 Lek per liter.

In total, in Macedonia, direct taxes are about ALL 48 per liter and in Albania ALL 97 per liter, the double.
Albania ranked 5th in the world for the most expensive oil price, why do we pay so much? Albania ranked 5th in the world for the most expensive oil price, why do we pay so much? Sunday, April 01, 2018 Rating: 5
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