North Macedonia has been forced to reduce fuel excise taxes once more and extend the temporary VAT reduction from 18% to 10%, as cross-border demand pushes consumption to unprecedented levels.
According to Macedonian media, daily fuel consumption last week reached a record 2 million liters, up from 1.5 million liters previously. The surge is largely attributed to drivers from neighboring countries, including Albania, drawn by lower retail prices across the border.
Prime Minister Hristijan Mickoski announced the latest measures in a Sunday press conference. The excise on diesel will drop by 4 denars per liter, while gasoline (95 and 98 octane) will decrease by 2 denars per liter. The VAT cut for fuels, initially introduced in March, has also been extended until April 20. Despite rising consumption, officials assured that there will be no supply restrictions for local consumers.
Retail fuel prices in North Macedonia currently stand at approximately 84 denars per liter for Eurosuper 95, 85.5 denars for Eurosuper 98, and 95.5 denars for Eurodiesel (about €1.36–€1.55 per liter). These represent increases of roughly 10 denars per liter for gasoline and 26.5 denars for diesel compared to previous levels.
Albanian drivers significantly contribute to this cross-border consumption. Industry estimates suggest that vehicles from Albania purchase around 300–500 tons of diesel daily near border areas, with an additional 120–300 tons potentially coming from other foreign drivers who would otherwise fuel in Albania. At current prices, these purchases represent roughly €1 million per day leaving Albania, equating to over €350 million annually.
Domestic fuel prices in Albania remain among the highest in the region, with €2.2 per liter for diesel, including a tax burden of 53% of the total price. In comparison, North Macedonia charges €1.55 per liter, Kosovo €1.7–€1.8, and Montenegro €1.6, highlighting significant tax-driven disparities.
Although the Albanian government recently reduced excise by 20%, the measure translates into only a 9.5 lek per liter saving, while market fuel prices rose to 224 lek per liter. This continues to drive Albanian drivers to purchase fuel abroad, putting additional pressure on neighboring economies.
The current trends illustrate how tax policies and regional price differences are reshaping fuel consumption patterns in the Balkans, with Albania losing millions of euros daily to cross-border purchases.