In the domestic market, in addition to the increase in oil prices, food prices have also begun to rise, influenced by the increase in the cost of importers' supplies.
The increase in fuel prices for sunflower oil processing refineries abroad and transportation tariffs have led domestic importers to increase the wholesale price of edible oil by 7-8% during March.
During February, the period before the outbreak of the war in the Middle East, according to importers, sunflower oil was traded at a wholesale price of 176 to 178 lek per liter. Starting from the third week of March, importers claim that they were forced to increase the price by about 5 lek per liter, bringing it to 182 to 183 lek per liter.
Starting from the last week of March, importers of locally packaged refined oil say there will be another price increase of 7 lek per liter. After these increases, the wholesale price of edible oil reaches 190 lek per liter.
One of the sunflower oil importers explained to "Monitor" that the reason for the price increase is the increase in the price of the product from the manufacturing plants and the increase in transportation fees.
"Oil producers in Hungary, from where Albania is supplied, have increased the selling price of the product, due to the increase in costs from fuel and fuels used by refineries. Due to the increase in fuel prices alone, supply prices have increased by 1.5 lek per liter."
After the start of the war, there was a significant increase in transport tariffs. If during February the transport of 1 ton of oil cost between 140 and 160 USD, after the start of the war the transport tariff reached 200 USD per ton. This makes imported oil more expensive by another 1 lek per liter.”
A similar situation with rising prices for edible sunflower oil also occurred during March 2022.
Following the start of the Russia-Ukraine war and the difficulties created in importing sunflower oil, prices in the Albanian market increased by about 33%. In March 2022, the price of sunflower oil in the retail market was traded at 330 lek per liter from 249 lek per liter in February (32.5% increase).
After this period, the price increased by about 9% and reached 370 lek per liter, while in mid-April, the retail price of oil peaked at 400 lek per liter.
Experts point out that the lack of domestic cooking oil production once again showed that the Albanian economy lacked the main shock absorber to curb price inflation.
Albania has had two oil refineries, the factory of the company "Olim" and the company "Vajra bimore" that traded "Fiol" oil, but currently neither of them imports crude oil (grexho) and refines it into edible oil. Since 2016, for almost a decade, the processing companies have become packagers of imported refined oil. / Monitor
