Speaking at a meeting of the ruling Socialist Party (SP) in Tirana, Rama said the move would bring a “deep transformation” of how the country’s fuel market operates.

The announcement comes amid rising fuel prices, which Rama linked to the conflict in the Middle East.

Explaining the structure of fuel pricing, the government head said removing the circulation tax would lower pump prices, but would ultimately result in higher overall costs for vehicle owners, who would have to pay up to four times more through alternative charges.

He added that those currently paying the most are also the largest consumers of fuel and, consequently, the biggest contributors to environmental pollution.

Rama said the planned public company would be responsible for ensuring Albania’s strategic oil reserves – a safeguard he described as essential to prevent supply disruptions.

The company would also act as a market supplier, with the aim of influencing prices in favour of consumers rather than distributors, he said.

In addition, Rama noted that a joint public company with the United Arab Emirates has already been established, replacing several concessionary arrangements inherited by the government.

Some of those concessions – including systems for fiscal stamps and fuel marking – had proven ineffective, he said, while stressing that fuel marking remains critical to preventing smuggling.

“A new, robust system will soon be introduced that will be impossible to circumvent or manipulate,” Rama said.

He also identified transit fuel as another area vulnerable to abuse, warning that it risks entering the domestic market illegally.

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Speaking on his Let’s Talk podcast, the government head attributed the recent increase in fuel prices to global supply disruptions linked to broader geopolitical developments.

He said a joint taskforce involving the economy and finance ministries has been established to intensify market monitoring and prevent abuses. While no major violations have been identified so far, authorities have decided to reintroduce the fuel price transparency board following another price spike.

Rama also highlighted a temporary reduction in fuel excise by around 20% as a key step to ease pressure on consumers.

He added that any additional state revenue generated from higher fuel prices, after the excise cut, would be directed primarily toward supporting pensioners.

“The priority is to protect pensioners. Any extra income collected by the state will go toward that purpose,” Rama said.

The government is also preparing legislation on strategic fuel reserves, currently under public consultation, and plans further interventions to improve price stability and transparency in the fuel market.

According to Rama, the measures will also target tax evasion and fuel smuggling by introducing stricter controls and greater oversight of supply chains.

He said the broader reform effort, launched prior to the current crisis, aims to establish a stronger state role in the market to ensure fair pricing and protect consumers.

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The taskforce, comprising the Tax Administration and Customs Administration, identified multiple breaches among fuel trading companies flagged through risk analysis. Violations included failure to issue tax invoices, undeclared employees, trading without proper documentation, without installing fiscalisation systems, and poor record-keeping.

Authorities said the tax documentation of non-compliant entities has been seized for further investigation.

The Tax Administration urged all operators in the sector to comply with existing legislation, stressing the importance of formalising economic activity. Inspections are expected to continue nationwide to curb price abuses and protect consumers.

Fuel prices in Albania have risen sharply in recent weeks, approaching 220 leks per litre, mirroring developments in international markets driven by geopolitical tensions involving Iran, the United States and Israel.

In response, the government has stepped up oversight of the sector. Economy and Innovation Minister Delina Ibrahimaj said the taskforce will carry out daily field inspections to ensure compliance.

Authorities have also reinstated the fuel price transparency board and are preparing to introduce a “floating excise” mechanism, under which excise taxes would be automatically reduced by 20% if fuel prices reach the 220 leks per litre threshold, aiming to ease the burden on consumers.

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Finance Minister Petrit Malaj on Wednesday held a meeting with the heads of the country’s tax and customs administrations to agree on an operational plan for the initiative.

The task force will bring together the General Directorate of Taxes and the General Directorate of Customs to strengthen tax and customs enforcement in the wholesale and retail fuel trade.

Finance Minister Malaj said the move also comes in the context of recent international developments that have affected global fuel prices, citing tensions involving Iran, the United States and Israel.

“Prices will be closely monitored by the two institutions to ensure there are no abusive increases in the wholesale or retail fuel market,” Malaj said.

He said the plan includes risk-based assessments of operators active in the sector, as well as gathering market information to identify potential irregularities.

Controls will focus not only on tax and customs documentation but also on physical inspections of fuel quantities traded by wholesale and retail operators, he added.

Customs Administration Director Besmir Beja said inspections will be carried out across the country based on operators identified as high risk.

Joint inspection teams with the tax administration will seek to ensure businesses operate in line with the law, that all sales are properly registered for tax purposes and that traded fuel complies with customs and tax obligations, he said.

Tax administration head Ilir Binaj said institutions have coordinated the operational plan and launched a risk analysis of the sector.

Drawing on experience from previous operations, authorities aim to carry out the initiative over a longer period to improve formalisation and ensure the proper functioning of the fuel market, he added.

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Addressing an event on the agricultural and rural development, the latest communication platform with farmers and rural enterprises as part of Albania’s EU accession ambition by 2030, Rama stated that support for the agricultural sector must enter a new stage – one that includes reforms in fuel policy.

“We are preparing to intervene in the oil sector. The government will become an active force in creating cooperative schemes with businesses and economic actors to raise incomes—not the state’s, but those of the people,” Rama said.

He explained that the government plans to participate directly in fuel import and distribution, alongside private actors, in order to lower prices and guarantee supply.

“This is a well-studied and feasible model,” he added. “By becoming a stakeholder in fuel import and distribution, the government will help secure more reasonable prices for consumers.”

PM Rama also indicated that this shift would redefine fuel policy for the agricultural sector, moving away from the current subsidy framework toward a more structural and market-based approach.

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