Bulgaria: Fuel to Increase in Price to 3 leva while Lukoil makes 1 Billion 800 Million Excess ProfitEnergy | September 26, 2023, Tuesday // 09:59| views
Gas stations are trying to raise the prices of fuel and in some small towns, they are already feeling the ground with a price for ordinary diesel and gasoline of 3 leva per liter. Considering that until recently the price was around 2.30/l leva.
This became clear from a report on Nova TV this morning.
"The price of fuel would have to be at least 32 cents lower than it is now if there was any effect from the derogation that was worked so hard to achieve last year. We have not seen the effects of it!
We buy Russian oil at 20% lower prices than local markets in Europe, and Lukoil - which has 95% of the market, sells at prices close to the average in Europe."
This was stated in the morning block by Martin Vladimirov, an energy analyst from the Center for the Study of Democracy.
"A-95 should cost around 2.65/l. leva real price, according to yesterday's assessment I made of EU prices.
In Europe, production costs form somewhere around 42% of the price, in Bulgaria they form about 58%. The difference between these two is more or less the markup that Lukoil charges, which turns into excess profit. Until now, I calculate it at 1 billion 800 thousand leva excess profit for 2023."
Vladimirov reminded that, in addition, Bulgaria has the lowest VAT and excise taxes in the EU.
"The goal is also to generate a huge income for the Russian Federation, which allows it to wage the war in Ukraine. According to our calculations, Lukoil's profit currently generates 4% of all Russian state budget revenues from oil", Vladimirov said, adding:
"Lukoil treats the Bulgarian market as if it were selling crude oil or some of the other internationally quoted types of oil. When crude oil goes up in international markets, it will probably go up in our country too. The price is also rising because of the geopolitical decisions of Russia and Saudi Arabia", he further explained.
The expert explained that Bulgaria should be a price "island" because of cheap imports and should not be affected by the movements of the world stock exchanges.
He specifically emphasized that the state had prepared an analysis a long time ago - that there are neither economic nor technical reasons for the refinery not to switch to non-Russian oil.
"The price of fuel at the moment has nothing to do with whether we have a derogation or not. Production costs are the same as before the Russian invasion of Ukraine. And the law that came into force - to tax the profit of 'Lukoil' - two ministers are already blundering, inventing all kinds of bureaucratic reasons", he emphasized.
"It's about 200 million dollars a month and it's about a huge redistribution of bribes back - to the Bulgarian administration," he believes.
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