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Oil price increase, Rama shows scenarios: How the fuel excise tax reduction will work

2026-04-05 10:26:11Aktualitet SHKRUAR NGA REDAKSIA VOX
Oil price increase, Rama shows scenarios: How the fuel excise tax reduction will
Edi Rama

Prime Minister Edi Rama explained in his podcast how the normative act on reducing fuel excise duty will be implemented in practice, a decision made public earlier by the government.

Rama explained that the mechanism foresees automatic intervention when market prices exceed set thresholds.

Specifically, the 20% excise tax reduction for diesel will come into effect once the price exceeds 220 lek per liter, while for gasoline the threshold is 200 lek per liter.

According to him, these limits have been set to guarantee a balanced response to developments in international markets, over which the country has no control.

"This week we have also approved the promised normative act for the reduction of the excise tax on oil, at the moment when oil, as a result of the impact of the war on international markets, exceeds the limit of 220 lek. So, the reduction of the excise tax by 20% is a measure that comes into force immediately when the price of oil exceeds 220 lek per liter and that of gasoline exceeds 200 lek per liter. These thresholds are predetermined to guarantee a fair and balanced intervention in relation to market developments, which are developments that we do not have in our hands, we are not the cause of them and we do not even have the power to stop them, except that we have the obligation to treat them in order to cushion the immediate blow to consumers, without, on the other hand, undermining the stability of public finances at a time when uncertainty in international markets remains high and equally dynamic. The measure will remain in force until the international situation is fully stabilized, while the Board of "The transparency that has been put into motion will remain the guarantor of any development in global markets to reflect in a fair and verifiable manner what should happen in the domestic market. This is an appropriate, timely reaction that guarantees quick decision-making, that embodies full responsibility and that will make it possible for citizens, drivers, not to be abused by oil distributors. The measures for all those who will violate the price determined by the Transparency Board, based on the markets, will be drastic ," said Rama.

The head of government also spoke about the new scheme in agriculture, especially in support of young farmers.

"This scheme significantly increases support not only in terms of financial volume, but also in facilitating the conditions for benefiting what belongs to every farmer and by financing in those priority areas that guarantee greater productivity and strengthening of the value chain. For the first time, forms of support that have not been used to date, another innovation is the promotion of sustainable practices in agriculture through biological methods ," said Rama.


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