Diesel Prices in Albania and North Macedonia

Why fuel prices in Albania are nearly 70% higher than in North Macedonia…

Diesel prices have fallen again in recent days, dropping by 6–7 lekë per liter.

At major retailers such as Kastrati and Eida, a liter of diesel is now sold at 152 lekë, down from 157–158 lekë. Gega Oil has reduced its price below 150 lekë, while Alpet continues to keep it among the highest, close to 160 lekë. In some smaller stations, prices have dropped to around 140 lekë per liter, though there are concerns about the quality of fuel being sold there.

Since reaching nearly 180 lekë per liter in early 2015, fuel prices have been steadily decreasing in recent months.

The main reason for this downward trend is the decline in global oil prices — around $33 per barrel for Brent crude. The US dollar, the currency used for oil trading, has also remained more stable, exchanging at around 124 lekë, compared to over 130 lekë a year earlier.

Although Albania ranks among the countries with the highest fuel prices in Europe, market operators claim that with the current reduction, prices have reached their lowest point and are unlikely to drop further — even if international oil prices continue to fall — due to high taxation levels.

According to them, the heavy tax burden in Albania, especially compared with neighboring countries, is the main reason why Albanians pay significantly more for diesel.

Data from Global Petrol Prices, updated on February 8, show that Albania remains the 14th most expensive country in the world for fuel. In Europe, only the Netherlands, Denmark, Italy, Malta, Iceland, Monaco, Sweden, Switzerland, the UK, and Norway have higher prices — all of which enjoy much higher living standards than Albania.

Diesel in Albania — why it’s 70% more expensive than in North Macedonia

In North Macedonia, according to Global Petrol Prices (as of February 8), diesel cost $0.74 per liter — nearly half the price in Albania ($1.27 per liter on the same date). Market operators say the main reason lies in the higher number of taxes applied to fuel in Albania.

The base import price per liter is roughly the same in both countries — about 35 lekë per liter.

In North Macedonia, direct taxes on diesel include only excise tax (about 28 lekë per liter, or 0.2 cents per liter) and VAT, which amounts to roughly 15 lekë per liter (with a VAT rate of 18%, applied to a base price about 70% lower than in Albania).

Unlike Albania, North Macedonia does not include a circulation tax in the fuel price; it is applied to vehicles instead.

In Albania, diesel is taxed as follows:

• Excise: 37 lekë/liter
• Circulation tax: 27 lekë/liter
• Carbon tax: 3 lekë/liter
• Marking and scanning fees: 1 lekë/liter each
• VAT: around 21 lekë/liter

In total, direct taxes in North Macedonia amount to around 43 lekë per liter, compared to 90 lekë per liter in Albania.

Additionally, Albania has significantly increased the re-licensing fees for fuel stations, which operators estimate add another 5–10 lekë per liter. Other costs include those for the Central Technical Inspectorate, signage, advertising, depreciation, and secondary VAT — all bringing the total cost to around 150 lekë per liter.

As a result, diesel currently costs about 91 lekë per liter in North Macedonia, compared to 150–152 lekë per liter in Albania — roughly 70% more expensive.

Source: Energjia.al