Oil prices have dropped significantly, but Albanians pay the same: What's going on?

Top Channel has provided official data for the average price at which oil arrives in customs, to see specifically how low the cost of buying this product has been on international markets.

According to data from customs, the 10 ppm gas distribution price of a month has dropped from 96.5m per litre [$3 October] to 88.6 per litre. This is the cost by which oil arrives in customs, not including customs duties, which increase more than double.

But even though the cost of oil has been reduced by about $8 a litre, the retail market price has not changed. According to INSTAT, the average price of selling an oil liter in retail points has remained at unchanged levels of exactly 167.3m per litre. This means that all the differences stemming from the decline in oil prices in international markets have not yet been forwarded to consumers, but have been kept as an addition to profiting for businessmen.

Like most products on the market, oil prices are liberalised and set by the ratio between demand and supply. But beyond the heavy tax burden, the Albanian fuel market remains rigid by reflecting late prices on international markets, but not so much its growth.

According to official data, Albania imports about 500 thousand tonnes of fuel per year to a market estimated to circulate over 800m euros on the bottom scale, including domestic production. This makes fuels the largest market in the country for the volume of circulation, and also the product for which Albanians spend most on imports.