New study proposes model for achieving EU standard on oil security reserves

A new study published by ALTAX estimates that Albania remains the most energy-exposed country in Europe in terms of strategic oil reserves, currently having only about 15 days of supply, far from the European standard of 90 days.

The study, titled “Strategic Oil Reserves in Albania: Current Situation, EU Integration, Capacities, Regional Positioning and Future Perspectives,” presents for the first time a complete technical, fiscal and institutional analysis of the country’s capacities to build and manage strategic fuel reserves.

According to the analysis, Albania faces an energy paradox: the country produces crude oil and has about 150 million barrels of proven reserves, but due to the lack of functional refining capacities, it imports almost all of the refined products it consumes. This situation makes the Albanian economy dependent on international markets and import chains for fuel supply.

The study highlights that to meet the standard required by the European Union, Albania needs to create a strategic reserve of around 270,000 to 300,000 tons of petroleum products, including diesel, gasoline, aviation fuel and mazut. At current market prices, the value of the product alone would amount to 228–255 million euros, while when the costs of building the storage facilities and managing the system are included, the total investment could reach up to 480–520 million euros, plus around 26–34 million euros per year for operating costs.

According to the study’s authors, a full investment financed solely from the state budget would be difficult to afford from public finances. With public debt fluctuating around 62–65% of GDP, such a project could bring this indicator to 70–74%, limiting the space for other priority investments in the economy.

For this reason, the study proposes a “Gradual Hybrid Model”, which combines public financing, industry contributions and the support of international institutions. This model is based on four main pillars: the use of financial instruments of the European Union and development banks, the establishment of a dedicated fuel tariff to create a reserve fund, public-private partnerships for the construction of storage facilities and regional cooperation for the temporary use of the capacities of neighboring countries.

According to the ALTAX analysis, the combination of international financial instruments could mobilize 240–410 million euros, through programs such as the Growth Plan, Western Balkans investment funds and loans from development financial institutions. A tariff of around 2 lek per liter of fuel could generate around 30 million euros per year, creating a sustainable source of financing for strategic reserves without causing a major impact on the final price of fuels.

The regional comparative analysis also shows that Albania has a significant gap compared to neighboring countries. North Macedonia has reached about 51 days of reserves, Serbia about 45–55 days, while Greece, as an EU member state, maintains full reserves of 90 days.

The study warns that meeting the strategic reserves objectives is also an important element for the European integration process. Their failure to achieve them does not automatically block negotiations, but may negatively affect assessments of progress in the energy chapter of negotiations with the European Union.

According to the ALTAX research team, the construction of strategic reserves should be seen not only as a formal obligation to European standards, but also as a strategic investment for the country’s economy. In addition to increasing security of supply, reserves can contribute to stabilizing fuel prices in times of crisis, increasing investor confidence and reducing informality in the hydrocarbon market.

The study includes an action plan until 2031, which foresees the adoption of the legal framework, the establishment of the authority for the management of reserves, the mobilization of international financing and the gradual construction of storage capacities.

The full report is available on the official ALTAX website and contains detailed analysis, financing models and recommendations for policymakers.