Cross-border fuel shopping and distance: Evidence from Albania and Montenegro

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Authors: Marcus Maassen, Ritvana Rrukaj, Nevila Mehmetaj
Cited by: 1
References: 13

Abstract

This study examines how consumers respond to price differentials by analyzing cross-border fuel purchasing between Albania and Montenegro. Using station-level sales data from 2020–2024, we find clear evidence of substitution for diesel: when Montenegrin prices fall relative to Albanian prices, diesel sales at nearby Albanian stations decline, with the strongest effects within 20 kilometers of the nearest Montenegrin station. For gasoline, the evidence is mixed, with some indication of cross border shopping within 20 kilometers. This difference potentially reflects the fact that trucks, whose route often crosses this border, are flexible in their choice of where to buy fuel.

Fields of Study & Subjects

Urban and Freight Transport Logistics Aviation Industry Analysis and Trends Maritime Ports and Logistics

Publication details

Journal / source
Economics Letters
Publisher
Elsevier BV
Volume
263
Pages
112902–112902
Publication date
28 February 2026
Language
EN