Suspicions of abuse, oil prices rose by 30 cents compared to last year

Oil products have marked a significant increase in prices during the summer months in Kosovo. Citizens who have complained about price increases have raised suspicions of abuses by companies that sell derivatives. Meanwhile, the Association of Oil Workers said that the prices were based on movements in the international stock market

The price of oil has marked a significant increase in the summer months. While a liter of diesel last year cost around 90 cents, during August the prices increased by 30 cents more, namely 1 euro and 20 cents per liter. In North Macedonia, located on the border with Kosovo, oil has a price of 1 euro and 2 cents, or 62,50 dinars.

This has fueled suspicions in Kosovo of oil price abuse. The former Minister of Trade and Industry, Ismet Mulaj, has said that the Competition Authority should investigate the increase in prices, when the international exchange has a price of 43 cents per liter.

"It seems that the large presence of the diaspora has been used this time as well. This presence has consumed tremendous fuel and the prices have been extremely high. If the supply for diesel is 43 cents, while it is sold for 1 euro and 20 cents, then it is a high price", said Mulaj.

According to him, if analyzed from an economic point of view, the cost for an importer is about 80 cents, while for sale up to 120 cents, so it is up to 40 cents of profit per liter.

"This is a very high price when it is known that the pandemic has exhausted the economy. Fuel is a source of energy that is not only used as a fuel, but is also used for the farmer, the factory and many other productive activities", he asserted.

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Based on this, Mulaj says that there should be an investigation by the Competition Authority.

Citizens also say that they have noticed an increase in oil prices, but also in the prices of other products in general.

"Compared to England in Kosovo, it is much cheaper, there it is very expensive. This year a little more expensive, the prices were increased here too, maybe because these emigrants are coming, I don't know, but it seems to me they were a little more expensive", said Ilir Janova, a citizen.

"As the price increased, they bought me up to 1 euro, they used to have exactly, but now they have 1 euro and 10, and 1 and 15 to 1 and 20", says Qazim Sylejmani, another citizen.

The President of the Association of Oil Workers of Kosovo, Fadil Berjani, says that this increase in prices has come as a result of the increase in the international stock market.

"Regarding the increase in the price of oil, it is known that this is determined by the stock exchange and the OPEC production organization. As for the prices, the citizens are being served at the cheapest price in the region, except for Macedonia, which has the cheapest price for 22 cents. In Kosovo, the price of diesel is 1 and 11 cents to 1 and 20, while gasoline is 1 and 15 cents to 1.25", he emphasized.

He compares the prices with Albania and, according to him, the prices there are 10 cents to 30 cents more expensive than in Kosovo.

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Last year, the Kosovo Competition Authority (AKK) made a decision to fine 14 companies with over 4 million euros due to the manipulation of oil prices.

The oil sector is considered one of the most problematic sectors. This is after suspicions of poor quality of oil and price abuse have been raised several times.

Regarding the issue of quality, the minister Rozeta Hajdari said a few days ago that the findings in the market have established that the private inspection bodies did not have the parameters that the Customs had and as a short-term solution, the Customs was placed.

But a 2019 report by the National Audit Office shows that controls on imports of oil derivatives carried out by Customs have failed to ensure that imported oil meets standards.

The report concluded that the Customs laboratory carried out checks even without being accredited.

Even Minister Hajdari accepts the bad situation in this sector.

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"The oil market has problems, starting from the import, the import of oil does not come with the quality we expect, especially the import of industrial oil, and I am aware that the mixture of oil is in our attention, that we must address this problem , but we cannot illegally close any refinery if we do not find any findings", Hajdari said in a media conference days ago.

The new draft law on oil was approved by the Government at the end of June and forwarded to the Assembly for review.