Oil import drop: Kosovo expected to lose up to 100m euros

Kosovo Customs data shows that in April alone, oil has entered Kosovo, worth 8m euros, compared to the same month last year, where the value was 24m euros.

Kosovo Oil Association Chairman Fadil Berjan, in a conversation for Radio Free Europe, says isolation from the Coronavirus has also decreased in Kosovo, despite the price is lower than in recent years.

The impact has on Kosovo. The supplies at this time last year, within 24 hours, 120 Autobots have entered, while now in these days the maximum they enter Kosovo is 35 Autobot”, Berryani says.

Kosovo Customs data shows that from the month until the end of April this year, the total value of revenues from oil in Dogan has been over 61m euros, while in the same period in 2019, this value has been more than 80m euros.

Some citizens show that from the beginning of the implementation of emergency measures for the prevention of coronary, car exits have been limited, so even the cost of oil has been lower.

Driton Spahiu, a private sector worker, indicates that during this period he has used his car only to supply needed food.

During this time we've only stayed at home, we haven't had anywhere to go for a walk or even to a relative, except on March”, Spahiu says.

Experts on economic issues estimate that reducing customs revenues will directly affect Kosovo's budget, when considered that the largest portion of Kosovo's budget is filled by Kosovo Customs revenues.

Kosovo Business Alliance Chairman Agim Sahin tells Radio Free Europe that if this situation continues this way, by the end of the year Kosovo will lose up to 100m euros from oil revenues.

This value for Kosovo is huge loss. Kosovo needs to detonate the isolation scheme and start the job, opening the market for various sectors alike”, Sahin points out.

Fadil Berjan shows that the price of oil in Kosovo has dropped markedly compared to the previous time. This, according to him, is due to the reduction in demand worldwide as a result of pandemic.

The price for a litre of oil is 75 cents today, while retail is bought up to 82 cents, depending on the company”, Behrani says.

After the coronary pandemic lowered demand for oil, the global economy suffered shocks by creating excess oil supplies and filling the warehouses.

The price of crude oil Brant, used as an international standard, fell under $16 per barrel, which is the lowest price in more than two decades.

The Organisation of Oil Exporting Countries (OPEC), Russia and other production states have finalised an agreement on unprecedented reduction of oil production, in hopes of rising global prices, which have fallen due to coronary pandemic and price struggle.

OPEC Plus, a group of 23 production member states -- including Russia -- have said they have agreed to reduce the amount of oil produced for 9.7 million barrels a day during the months of May and June. / REL