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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.
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.
