TIRANA, May 5 – The Committee on Legal Affairs and Public Administration approved a normative act today. The act cuts excise duty by 20% when international hydrocarbon prices rise and increase retail fuel costs.
Deputy Minister of Finance Andi Mehmeti addressed the meeting. He said tensions in the Middle East have pushed up global fuel prices. He said the government introduced measures to protect consumers from higher costs.
The package aims to stabilize the market. It also controls retail fuel prices through price caps and tax reductions.
Mehmeti said the 20% excise cut applies when gasoline exceeds 200 ALL per litre. It also applies when diesel exceeds 220 ALL per litre. The Transparency Board continues to set temporary fuel price ceilings.
He said the new act adds a second response measure. The price cap remains the first measure. He noted that EU and regional countries use similar tools, including excise cuts and price controls.
The law sets excise duty at 80% of current levels under Law 61/2012 when thresholds are exceeded. Mehmeti said gasoline excise falls from 39.7 ALL to around 31.5 ALL per litre, a reduction of about 7.3 ALL per litre.
He said VAT at import stage falls by around 1.58 ALL per litre. Total tax relief reaches about 9.5 ALL per litre. He said the measure reduces retail fuel prices during the crisis period.
Mehmeti said the price cap exceeded limits on April 3 and April 8. Authorities applied the 20% excise reduction for diesel on those dates. He reported 553 million ALL in additional revenue from higher fuel prices. He also reported a 37 million ALL loss from the excise cut. Fuel imports increased by about 3% compared to March 2025.
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