Price Control Board member explains method chosen to cap price increase

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Niko Lera, a member of the Ministry of Finance’s Price Board, was invited to the studio of “A2 Business” to explain how this board determines prices.

“Our country’s price increase is a reflection of the global price increase, the increase in fuel prices, or the absence of supplies from war zones such as Russia and Ukraine. This is not a domestic crisis and has nothing to do with market speculation. The boards were established to oversee the pricing of three to four essential things for the population in order to prevent price manipulation,” Lera explained.

Additionally, Lera stated that the board “has established some margins that cover the firms’ operational expenses, with the purpose of avoiding excessive profits in this situation.”

“We estimated these margins using previous year’s balance sheets. After obtaining the cost of the goods and customs charges, we applied the margins and, after factoring in the margins of the importer, packager, and retailer, we arrived at a final pricing,” Lera explained.

Meanwhile, Mira Pogaçi, executive director of the “Albanian Traders Union,” stated that throughout this time period, there have been abuses.

“When abuse occurs, the market reacts swiftly. The growing pattern is being followed because everyone has been uncertain about the supply situation. Now, the issue is not limited to three or four products. We have a Council of Ministers directive that specifies that fundamental products and those associated with them will be monitored, but does not specify which products will be monitored. “Legal acts should be as transparent as possible,” Pogaçi emphasized.