Oil in Albania is among the most expensive in Europe, but for the Albanian consumer the real cost is even higher when the price of fuel is compared to income. A liter of oil in Albania requires a much larger portion of daily income than in most European countries, making fueling a vehicle significantly more expensive in relation to income.
The price of a liter of diesel in Albania has reached 229 lek (2.46 euros), ranking third in Europe, after Denmark with 2.60 euros and Norway with 2.56 euros. In the region, in Serbia, diesel has reached almost 2 euros, in Montenegro 1.87 euros, Bosnia and Herzegovina 1.76, in Montenegro 1.87 euros, in Kosovo 1.85 euros and the cheapest is in North Macedonia, with 1.64 euros.
The European average price in the countries included in the comparison is around 1.94 euros per liter.
But the price at the pump is not the only indicator to look at. A liter of diesel at 2.46 euros has a very different weight for an Albanian, a Dane or a Norwegian, due to the large differences in income.
To measure this difference, Monitor compared the price of oil, based on oil prices published by Global Petrol Prices, with the per capita income published by the IMF for 2026, measured according to purchasing power parity (PPP).
This indicator takes into account differences in price levels between countries and is used to more accurately compare economic standards and what citizens can buy with their income.
In Albania, per capita income according to purchasing power parity is about 25.2 thousand international dollars per year. Daily income per capita is about 69.2 dollars, while a liter of oil represents 3.56% of daily income, the highest in Europe. (see chart: Percentage of daily income needed to buy a liter of oil).
A Dane, in the country where oil is the most expensive in value, needs 1.06% of daily income to buy a liter of oil, while the daily income per capita is 245 international dollars, or almost 10 times higher than an Albanian citizen.
In Norway, which is the country with the third highest per capita income in Europe, according to purchasing power, after Ireland and Luxembourg, 0.8% of daily income is needed.
In all European countries analyzed, the average daily income needed to buy a liter of oil is 1.36%. So, for an Albanian citizen, buying a liter of oil represents about 2.6 times more daily income than for an average European citizen, and this includes all European countries.
If the comparison is made only for European Union countries, which have higher per capita incomes than the rest, the average is 1.14%, meaning an Albanian must spend about 3.1 times more of his daily income to buy a liter of diesel, compared to the average EU citizen.
In the region, in terms of purchasing power, the most expensive after Albania is in Kosovo, where it takes 3.1% of daily income measured according to purchasing power, ranking second most expensive in Europe. Oil in Kosovo is cheaper than in Albania, at 1.85 euros, but Kosovo has a daily income of almost 60 international dollars, which is 14% lower than in Albania.
The ranking is followed by Bosnia and Herzegovina (2.66%), Serbia (2.09%). The cheapest oil in relation to income is in North Macedonia, which has the cheapest oil in value, as well as in Montenegro, with 1.89% and 1.88%, respectively.
Taxes increase the price at the pump in Albania
Meanwhile, Albania continues to have the highest fuel prices in the region due to the high fiscal burden that accounts for almost 50% of the price and the lack of fiscal measures.
Also, in all countries in the region, only excise duty and VAT are calculated on the base price of oil. In some countries in the region, the excise duty is 2% less. In North Macedonia, VAT is 18% for oil and gasoline, but was reduced to 10% during the period of price increases.
In Kosovo, an 18% VAT rate is also applied.
VAT in Montenegro reaches 21%, but this country charges oil with only 2 taxes: VAT and excise duty, which was recently halved as a measure to amortize prices.
In Serbia, VAT is 20%, while the excise tax before the war was 59.5 lek per liter. But immediately after the conflict in the Middle East began, Serbia reduced the excise tax by 25%. The measure was reactivated a few weeks ago.
In Albania, in addition to the high excise tax of 39.4 lek per liter, the 20% VAT and the lack of fiscal measures, two additional taxes are applied to the price of oil, which are not applied in the countries of the region. The circulation tax is worth 27 lek per liter and the carbon tax of 3 lek per liter.
Albania, no relief measures for oil
Oil in Albania has reached 229 lek per liter, while gasoline has risen to 219 lek, marking new record levels and increasing pressure on consumers and businesses.
According to data published by Monitor, the increase in fuel prices is occurring while Albania has not taken new measures to mitigate the impact on citizens. Meanwhile, the mechanism envisaged to reduce excise duty by 20% remains limited in its implementation.
According to the scheme, the 20% reduction in excise duty was activated when oil exceeded 220 lek per liter and gasoline exceeded 200 lek per liter, but the decision-making for its application was related to the functioning and decision of the Board./ Monitor
