Bulgaria Faces Rising Fuel Prices as Middle East Conflict Pushes Costs Higher

Fuel prices in Bulgaria have already begun to climb in some areas, with gas station owners linking the increase to the escalating conflict in the Middle East. Operators in the Ruse region say the impact was felt unusually quickly after the outbreak of hostilities, as wholesale fuel prices reacted almost immediately. They warn that if the geopolitical tensions persist or intensify, the consequences could extend beyond short-term fluctuations, affecting both international markets and domestic consumers over a longer period. At present, diesel in parts of the country is being sold at around 1.33 euros per liter, while gasoline is priced at approximately 1.28 euros per liter.

Ventsislav Pengezov, who owns a gas station in the region, explained on BNT that wholesale fuel prices have risen sharply since the start of the week. According to him, the increase has already reached roughly 17 euro cents since Tuesday, with new price levels announced again earlier today. He expects the upward trend to continue and attributes the situation directly to the war involving Iran. Pengezov noted that both crude oil and refined fuels, particularly diesel, have become significantly more expensive on European exchanges.

He pointed out that the growth in fuel prices is currently outpacing the increase in crude oil itself. This, he said, is partly due to the heavy export of refined fuels to the Persian Gulf region. As a result, countries in Europe and Asia are feeling the strongest pressure from the market turbulence, while the United States is less exposed because it imports comparatively smaller volumes of oil.

Pengezov added that local retailers have limited flexibility when it comes to setting prices. In Bulgaria, he said, the Mediterranean spot market serves as the main benchmark, which means stations must closely follow developments there. He also commented that Lukoil is currently selling fuel below the spot price level, a situation he believes will inevitably lead to further adjustments upward. At the same time, he stressed that the profit margins for gas stations have already narrowed considerably.

In his view, one possible short-term measure would be the temporary release of fuel from the country’s strategic reserves. According to Pengezov, this could help stabilize prices for about a week and ease pressure on the market while authorities assess how the crisis develops. He argued that such reserves are specifically intended for emergencies like the current situation.

The gas station owner also criticized the government’s response so far. He said the reaction has not been adequate and questioned the decision announced by the Minister of Economy to send the Competition Protection Commission and the Consumer Protection Commission to inspect gas stations. In his words, retailers are the final link in the supply chain and have little influence over the factors driving the current price increases.

Looking ahead, Pengezov warned that a prolonged conflict in the Middle East could push oil prices significantly higher. If crude were to exceed 100 dollars per barrel, he estimated that fuel prices in Bulgaria could rise beyond three leva per liter.