Economics expert Ergis Sefa, invited to the studio News24, has analyzed recent economic developments in Albania, emphasizing the direct impact that international tensions, including the conflict in Iran, have on the increase in oil prices and the consequences for the domestic market.

According to him, the increase in fuel prices immediately affects the cost of transportation and consequently the price of every product on the market. "If transportation becomes more expensive, every product is affected by the price increase," said Sefa, adding that Albania has built a special oil price structure for decades.

He pointed out that over 52% of the price of a liter of oil in the country consists of taxes, a practice that aims to facilitate revenue collection by state institutions. However, according to him, this method has direct consequences for the consumer.

The expert suggested that the government consider the possibility of reducing excise duty or VAT to cope with the crisis, taking as an example the Italian model, where fuel taxes have been reduced for a certain period.

Sefa also raised concerns about Albania's high dependence on imports, noting that over half of the products in the basket come from abroad. "If transportation stops, we will have shortages or delays in supplies, which directly affects daily life," he said.

He called for crises not to be allowed to translate into real problems for citizens, emphasizing the need for more sustainable policies, including the transition to electric public transport.

In his analysis, Sefa warned that the Albanian economy is close to stagflation conditions, a combined situation of rising prices and economic stagnation. According to him, this will particularly weigh on the most vulnerable groups, such as pensioners, making their daily lives even more difficult.