Kosovo, one of Europe's poorest countries, struggles as Iran war drives
up fuel prices
[March 30, 2026] By
ZANA CIMILI
PRISTINA, Kosovo (AP) — Kushtrim Ajvazi is proud to be part of a
successful business in one of the poorest countries in Europe. The
company where he is a manager produces potato chips and other snacks
that can be found in almost every shop in Kosovo and are exported
abroad.
But Ajvazi's company faces unplanned challenges because of a steep rise
in fuel prices caused by the war in Iran, whose ripple effects have
reached this small corner of southeastern Europe.
The Pestova company has nearly 100 acres of potato fields in eastern
Kosovo that are used to make the potato chips sold under the name Vipa.
Both the firm and its distribution network were hit when the wholesale
price of fuel rose from 1.10 euros ($1.27) to up to 1.7 euros ($1.96)
per liter, Ajvazi said.
Kosovo does not have its own fuel production. The price of diesel and
gasoline is determined by importers whose profit margin is capped at
12%.
Ajvazi urged the government to help ease the burden. Spring is potato
planting season.
The company needs a lot of fuel so costs are "extremely high," he said.
Fertilizer prices also have gone up, but the company had reserves.
“We are analyzing and calculating every additional cost, and if we see
that this process of rising costs continues, we will be forced to adjust
our prices," Ajvazi said.
While other countries in Balkans have put in place measures to ease the
effects on farmers, Kosovo's government is yet to act. The government
did not respond to questions.
Romania, Hungary and Serbia have introduced special diesel prices for
farmers or lowered the state tax income.
In Kosovo, economic experts warned that the government should urgently
respond in case of a further price increase, to prevent greater damage
to the economy.
“There is not one sector that is not affected by the price increase,"
economist Safet Gerxhaliu said.
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A worker of Pestova firm inspects the potatoes in the village of
Pestove, Kosovo on March 26, 2026. (AP Photo/Visar Kryeziu)
 Ajvazi said his company faces
additional problems because around 40% of production is exported
with prearranged, fixed prices that can be changed only with a
90-day advance notice. He said it is hard to plan anything without
stable prices.
“We call on the government to ease this phase for us," he said. "We
are a company that exports to more than 23 different countries,
including those in Europe.”
The price hike has also burdened ordinary citizens. Bardh Mehmeti,
an IT professional from the capital, Pristina, said he now pays 100
euros ($115) for a full tank, up from 80 euros ($92) before the
crisis. Mehmeti is now “seriously considering" ways to get an
electric car.
Kosovo's economy has struggled ever since the country declared
independence from Serbia in 2008 following a war. Serbia does not
recognize the split, and the unresolved situation has stalled the
countries in their bids to join the European Union.
Also affecting Kosovo's economic situation has been a prolonged
political crisis that left the country without a fully functioning
government for much of last year. The current government of Prime
Minster Albin Kurti is again in a stalemate over a failure to elect
a new president.
The main opposition Democratic Party has criticized what it calls
government inaction and urged temporary tax cuts to help ease the
burden on citizens and businesses.
___
Associated Press writer Jovana Gec contributed from Belgrade,
Serbia.
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