Government, plan to reduce oil prices - Options / From involvement in import and distribution, to tax reduction
The government is planning to intervene in the oil market, with the aim of reducing prices for consumers, according to Prime Minister Edi Rama.
"This is something that we have studied for a long time and it is something that we see as completely possible and doable. I believe that within this year, we will participate as a government in the import of oil and in the distribution of oil, in cooperation with all other actors, for whom we will make life easier because they will be able to have the government as a guarantor of the import and supply of oil. This will put us in a position where we will be able to determine a more reasonable price than the current price of oil in Albania, which is definitely related to the composition of the price due to the circulation tax, but now the time has come to act in a different way," said Rama.
This statement by Prime Minister Rama could potentially bring about a significant change in the role that the Albanian state will play in the oil market by being an actor in the import and distribution of oil in the country. Until now, these processes have been carried out by private companies.
Also, according to Rama, the government will be the "guarantor of imports and supplies," meaning that it aims to ensure a stable supply of oil for the domestic market, perhaps using its own logistical capacities, international agreements, or state funds.
Rama acknowledges that the current price of oil is high and “linked to its components,” including the sales tax. Although no tax cut is explicitly stated, government involvement could be a way to bypass some of the costs that increase the price for the final consumer.
Currently, the circulation tax is 27 lekë/liter, while part of the price are also carbon tax, excise duty, relicensing tax, etc. on which VAT is also applied, resulting in a total tax of about 123 lekë/liter. A change in the fiscal regime would directly affect the final price, reducing costs for consumers.
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