Bulgaria to Rein In Fuel Prices via Legal Amendments

The Bulgarian government plans to combat high fuel prices through legal changes, according to Finance Minister and Deputy Prime Minister Simeon Djankov. Photo by BGNES

The Bulgarian government plans to combat high fuel prices through legal changes, according to Finance Minister and Deputy Prime Minister Simeon Djankov.

Speaking in Thursday in Panagyurishte, Djankov explained that the legal amendments would be aimed at enabling greater competition, thereby reducing fuel prices and alleviating the situation on the market.

He noted that Bulgaria could not reduce fuel excise duty because it had undertaken a commitment to gradually increase the tax rate upon its accession into the EU.

Djankov, as cited by private TV channel bTV, argued that the commitment had been a mistake because excise tax rates were supposed to be proportional to people's incomes.

Bulgaria's Finance Minister reminded that the current fuel excise duty rates in Bulgaria were below the EU minimum.

He admitted that there was an option to seek a reduction of the fuel excise tax rates, adding that the step required a decision of the European Commission and the 26 other Member States, 9 of which had to hold a referendum on the matter.

Djankov went on to reject the option of using the national reserve to alleviate the situation on the market, saying that the step had to be adopted simultaneously by a large group of EU countries, while the next meeting of EU Finance Ministers was scheduled for mid-September.

Djankov suggested Tuesday that prices of gasoline and diesel would drop by September or October.

He told journalists that fuels were a seasonal commodity, with prices rising in summer and falling in autumn.

He stressed that fuel prices were high all over the world, adding that the Bulgarian government had very few tools to influence prices.

On Monday, gasoline A95 reached a record level of BGN 2.77 per liter, while a liter of A98 settled at over BGN 3 per liter.

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