Public transport towards oil subsidy, there will be no service reduction

2026-04-01 20:05:21, Aktualitet CNA

In order to ease the costs of urban and interurban public transportation following the increase in fuel prices, the government plans to reinstate the diesel subsidy scheme.

Following requests sent to ministries to take measures, the Urban and Interurban Transport Associations held a meeting today with the Minister of Economy and Innovation Delina Ibrahimaj and the Minister of Infrastructure and Energy Enea Karakaçi.

The Chairman of the Urban and Interurban Transport Association, Dashnor Memaj, told "Monitor" that during the meeting it was decided that the service will continue and the state will take measures for subsidy.

Subsidies as a protective measure for the sector were also implemented during the crisis period of 2022 due to the war in Ukraine. During that period, public transport was subsidized with oil at the rate of 100 lek per liter.

Memaj stressed that the amount of the subsidy has not yet been determined. According to him, the details are expected to be determined at another meeting to be held on Tuesday. However, he underlined that for the public sector, the subsidy will be inevitable.

In the letter sent to the ministries, the transport associations previously requested a review of the fiscal burden on fuel, especially in terms of excise duty and turnover tax; 2- the evaluation of a special policy for the public transport sector for the abolition of VAT; 3- the application of subsidy or compensation mechanisms, in order to guarantee the continuity and sustainability of this service in the interest of citizens.

Otherwise, if measures were not taken, operators warned of a service reduction of up to 30%.

A concern for the public transport sector remains the increase in costs.

According to operators, the increase in the price of oil from around 145 lek per liter, before the recent crises, to around 214 lek per liter, currently, an increase of approximately 70 lek per liter, has brought about a significant increase in operating expenses for operators.

"This situation is further aggravated by the high weight of fiscal components in the price of fuel, exerting continuous pressure on the financial capacity of the sector. As a result, maintaining the balance between costs and revenues, as well as guaranteeing the same level of service, with the same quality and frequency, is becoming increasingly difficult," the operators previously emphasized./Monitor.al