Bulgaria Cabinet with New Attempt to Tame Fuel Prices

The fuel price hike in Bulgaria reached all-time record levels recently. File photo

Bulgarian freight careers, merchants and manufacturers of fuels are meeting Wednesday with the Economy and Energy Minister, Transports and Finance Ministers, to discuss measures to lower the skyrocketing fuel prices in the country.

The meeting comes exactly a week after the same debate was held for the first time, where participants agreed on three measures to lower mainly diesel prices – two involve taking off the bio component from the diesel fuel or, at least, the excise duty on it, while the third provides for leveling the obligations of the State and the manufacturers and merchants of fuels in maintaining mandatory quantities of fuels.

All three measures relate to infringement procedures from the European Commission.

Finance Minister, Simeon Djankov, is firm lowering the excise duty is impossible, but the idea about the State taking the major part of the fuel reserve from the merchants and the manufacturers remains the most feasible one. Currently, the State pays about one third of these expenses – increasing its participation would allow lowering the end prices.

Manufacturers of fuels and gas stations are mandated to maintain fuels in storage in the volume that would cover demand for 90 days it the deliveries stop in full.

The National Association of Bio-fuels opposed the proposal to take off the bio component from the diesel fuels on the grounds it would not do anything to lower the price. In addition, the EU mandates the presence of the component.

The Lukoil Bulgaria company proposed during the week an innovative way to lower fuel prices – keep them at the same level for a full month. The measure was announced in person by Prime Minister, Boyko Borisov.

It is expected the cabinet will make its final decisions on taming the prices on Wednesday.

The debates come on the heels of large-scale protest of citizens and cargo careers against the price hike.