Kosovo, one of Europe's poorest countries, struggles as Iran war drives up fuel prices

Kosovo, one of Europe's poorest countries, struggles as Iran war drives up fuel prices Kosovo is one of the Europe's poorest countries and struggles with a steep rise in fuel prices caused by the Iran war By ZANA CIMILI Associated Press March 30, 2026, 1:19 AM PRISTINA, Kosovo -- 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 ...