People traveling for vacations, work, or personal reasons in Albania are now facing higher costs to fill up their vehicles, as fuel prices experience a second increase in a matter of days.

The country has seen a significant surge in both oil and gasoline prices, with a total increase of 8-9 Albanian lek per liter.

At trading points, one liter of oil is now priced at 185 Albanian lek, up from the previous 179 lek, and it had briefly dropped to 176 lek earlier.

Gasoline has not been spared either, with one liter now costing 188 Albanian lek, compared to the previous 182 lek, which had seen a temporary drop to 179 lek.

Market operators attribute these price hikes to the rising cost of oil in international markets. The Platts index, a reference point used by importers, has reached around 900 dollars per ton.

This is the second time fuel trading operators have made price adjustments since the dissolution of the Transparency Board. The board, which had been in effect from March 2022 until June 7, 2023, had previously set price caps for fuel.

Following the Board’s dissolution, oil was priced at 176 lek per liter, with the lowest level reaching 169 lek per liter in early May.

Both instances of price adjustments made by operators after the Board’s dissolution have been in an upward direction.

Operators of the market have explained that the increase in prices was necessary due to the soaring oil prices in international markets. Oil initially reached 780 dollars per ton and now stands at 900 dollars per ton, up from 690 dollars in early June when the Board made its decision.

Meanwhile, another significant reference indicator, “Brent”, has risen to 85 dollars per barrel, compared to the 74-76 dollars seen at the beginning of June. Reuters reports that prices continue to rise due to investor optimism about global economic growth, along with concerns about fuel supply restrictions.

On the other hand, in the domestic market, the US dollar, which serves as the currency for fuel trading, has experienced a notable depreciation. It has dropped to nearly 90 Albanian lek for a few days and now stands at 95 lek, down from the 100 lek rate at the beginning of June.

For over a year, since March 2022, price caps for fuel were determined by the Transparency Board, a government mechanism aimed at controlling prices following the market crisis triggered by Russia’s attack on Ukraine.

Operators have voiced their opposition to the Board, arguing that it violated market economy principles and hindered companies from optimizing purchases in international markets, which would have allowed them to access supplies at more competitive prices. According to them, this could have resulted in prices approximately 5% lower than those set by the Board.

With the Board’s dissolution on June 7, its final decision was made on May 26, setting the maximum trading price for wholesale oil at 176 lek and gasoline at 179 lek.