eli5-why Albania produces oil, but their prices are among the highest IN europe, maybe even in the world?
In: 7
Taxes is the bulk of the issue. For whatever reason Albania has chosen to tax their domestic fuel prices at a higher rate than other countries. There are also a lot of different kinds of taxes Albania has on fuel at the same time. There is the VAT at 20%, but also environmental and circulation taxes which are 15% of the final price. Also there is excise taxes which seem to be around 18% of the final price, and regulatory fees which are about 4% of the final price.
Overall at least 60% of the final price Albanians pay for fuel is just taxes. Albania’s unstable fiscal policy and corruption also have an influence, but taxes are the main factor.
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