On Monday, the Ministry of Capital Investments sent an initiative to the Ministry of Finance to reduce the excise tax on oil derivatives by at least ten percent, in order to neutralize a possible new fuel price increase starting next week.
In the explanation of the proposal, it is stated that according to the current data from the international exchanges of oil derivatives and the exchange rate of the dollar and the euro, at the next adjustment of retail prices on September 25th, there could be a new price increase.
The prices of the two types of gasoline would be higher by four cents each, Eurodiesel by nine cents and fuel oil by eight cents.
Based on last year’s amendments to the Excise Law, the Government has the possibility to temporarily reduce the amount of excise duty by up to 50 percent due to disruptions in international markets.
The excise duty on gasoline is 54.9 cents, and on diesel it is 44 cents. The excise tax is included in the calculation of the value added tax of 21 percent, so a ten percent reduction in the excise tax would affect the lower price for a total reduction in the price of gasoline by 6.6 cents, and Eurodiesel by 5.3 cents.
In May of last year, Dritan Abazović‘s government reduced excise duties on fuel by 40 percent, and then by 50 percent in order to reduce prices and help citizens and the economy.
When the excise duty was reduced by 40 percent, a liter of super 98 cost EUR 1.77, while its price is now EUR 1.7, and the new one, according to the preliminary calculation of MKI, could be EUR 1.74 next week.
Eurodiesel then cost EUR 1.76, its current price is EUR 1.58, and with the new expected price increase it will amount to EUR 1.67.
This shows that fuel prices next week will be very close to the prices from May last year, when the government reduced excise taxes by 40 percent. Last year’s lowering of excise taxes, as previously announced by the Ministry of Finance, cost the state budget EUR 50 million.
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