Kosovo Fuel Prices Surge Amid Iran War

In Pristina, Kosovo, a sharp increase in fuel prices triggered by the war in Iran is straining businesses and households across the country, exacerbating economic vulnerabilities in one of Europe's poorest nations.

The wholesale price of fuel has surged from 1.10 euros per liter to as high as 1.7 euros, according to Kushtrim Ajvazi, a manager at Pestova, a snack production company that operates nearly 100 acres of potato fields in eastern Kosovo. The firm, which manufactures potato chips under the Vipa brand found in shops nationwide and exported abroad, relies heavily on diesel for farming and distribution. Kosovo produces no fuel domestically, leaving prices determined by importers whose profit margins are limited to 12 percent. The rise has hit during spring planting season, when fuel demands peak for tilling fields and transporting goods.

Ajvazi said the company is closely monitoring costs, including a parallel uptick in fertilizer prices, though reserves have cushioned that impact for now. "Spring is potato planting season. The company needs a lot of fuel so costs are extremely high," he explained. Fertilizer prices also have gone up, but the company had reserves. "We are...