Oil released in the world, expensive in Kosovo

Oilmen's representatives argue because the import of this product by commercial and supply companies was purchased earlier, at higher prices.

In Kosovo, on 31 March, a litre of oil has been sold to 1.69 euros, meanwhile, gasoline to 1.59 euros, depending on the economic operator and location. The price of this product had marked a decline of up to 1.49 euros.

At current prices these products have been sold even on March 8th, when oil processed on the international stock market has been $130 per power.

However, crude oil Brant, which is used as an international reference point, has dropped to about $106 per barrel on March 31st.

The Ministry of Industry, Intervention and Trade (MINT) on Wednesday has said that synchronising oil price hikes leaves space for doubt in orchestrating price growth. They have added that authorities are inspecting the ground.

Radio Free Europe has requested answers from MINT on Thursday what are the findings from inspection on the ground, but until the moment the text is published, they haven't given any answers.

Fuel prices are taking place because of increased demand for this product in international markets following Russia's military intervention in Ukraine and sanctions that the United States and European Union states have imposed against Moscow.

Irfan Grgouri, owner of the company “Gguri Petrol” from Fushë Kosova, who deals with retail fuel, acknowledges that on Wednesday (March 30th) it has increased the fuel price from 1.60 to 1.65 euros, even though it has been reserve, “since the price has been raised by other companies”. He adds that it does not depend on the price of the international stock exchange, but on the price at which he buys in companies inside Kosovo.

Big companies see only their own interests. We're working on losses. Four days ago I was supplied with oil at 1.59 euros. Until March 29th, I sold 1.60 euros, while from Wednesday I raised the price to 1.65 euros. From yesterday we're better off, we're making 0.5 cents a day”, he says.

I bought the $1.46 cents and sold it from $1.40 yesterday, with four cents in defeat. Now it's 1.50 euros since two days we're better”, he points out.

Radio Free Europe has contacted some of the companies dealing with trade and fuel sales supplies in Kosovo, but they have not provided answers to what price they are supplied.

Kosovo Oil Association Chairman Fadil Berjan said current prices in the market have increased because import of the product occurred earlier and has already been released for sale.

The price of fuel in abundance on March 31st, a litre of oil has cost 1.55 euros, add government margins. Thus, the price of an oil line in the market stands at 1.69 euros”, Berryan said.

The Kosovo government on March 1st has made a decision to determine the maximum retail prices or trade margins by large.

According to this decision, aimed at protecting consumers from large price movements, the highest trading margin is 4 percent of the sale price, and among retail vendors, higher margins are up to 6 percent.

Berjani says that the price movement has also affected the interruption of the supply for Kosovo by several companies from Albania.

Currently, only one operator from Albania imports derivatives to Kosovo, it is “Gega Oil Group”.

The owner of this company, Genc Gega, in a conversation for Radio Free Europe, says the reserves of derivatives have enough, but demand by Kosovo companies has dropped significantly due to price hikes. He said that of 4.2 million liters a day, as many as 2,000 gallons [200,000 L] a day has already been required.

“Nafta majority for Kosovo operators sells for 1.53 euros”, Gega says.

The retail oil price in Albania's market is 1.95 euros, while the 779-euro gas station.

The cheapest fuel prices are on the northern Macedonian market. A litre of oil costs 1.42 euros, while fuel costs 1.39 euros.

Kosovo does not have its own refinery, and it imports fuel from other countries.

According to data from the Kosovo Statistics Agency, over 410m litres of oil were imported to Kosovo last year. Gas derivatives are not included in this figure.

Between February 24th and March 8th, about 31 million liters of fuel have been imported to Kosovo, mostly from Saudi Arabia, and then from northern Macedonia, Greece, Turkey and other countries. / REL