Bulgarian Government to Give €20 Monthly Fuel Aid to Low-Income Car Owners

Bulgaria’s caretaker government is preparing financial assistance for low-income citizens as fuel prices continue to rise following the outbreak of war in the Middle East. Caretaker Prime Minister Andrey Gyurov said that people with incomes of up to twice the poverty line, roughly 781 euros, will receive monthly compensation aimed at easing the pressure caused by the higher cost of fuel.

The support is expected to amount to about 20 euros per person per month and will apply to individuals who meet several conditions. Eligible recipients must fall within the defined income threshold, own or lease a car, and have paid their taxes and fines. According to Gyurov, the compensation will be transferred directly into beneficiaries’ bank accounts during months when fuel prices remain elevated.

The government intends to begin distributing the payments as early as March, with funds deposited automatically without the need for citizens to submit applications, collect vouchers or participate in any additional administrative procedures. Gyurov stressed that the measure is designed to reach people directly and should not be used as a tool for political campaigning.

Authorities estimate that the program will cost between 20 million and 30 million euros, depending on the number of people who qualify for the assistance. The money will come from the state budget, the prime minister said, and the payments will continue as long as fuel prices remain high due to the ongoing conflict in the Middle East.

The caretaker cabinet has also begun examining broader steps to address the impact of rising energy costs. Gyurov explained that the government has been monitoring developments on the petroleum products market since the beginning of the week and is working on measures intended to ease pressure on both households and businesses.

To coordinate the response, an interdepartmental working group was established on March 10 under the leadership of the prime minister. The group presented its initial proposals two days later, while the final calculations for the assistance program and other measures are expected to be completed within the next few days.

One of the additional steps being prepared is aimed at the business sector. The government is considering postponing a previously planned increase in toll charges, which could provide temporary relief for companies facing higher transport and fuel costs.

At the same time, Gyurov ruled out several other options that have been suggested in public debate. Lowering the excise duty on fuels is not possible, he said, because Bulgaria is already applying the minimum rate permitted under European Union regulations. Introducing a price ceiling on fuel would also be problematic, he warned, as such a measure could lead to shortages if traders begin exporting fuel to markets where prices are higher.

According to Gyurov, fuel price increases in Bulgaria remain among the lowest in Europe, even when compared with neighboring countries. The difference between Bulgarian prices and those elsewhere in the region ranges from about 20 to 50 euro cents per liter depending on the type of fuel.

Nevertheless, prices have risen noticeably since the escalation of the Middle East conflict. Current levels are between 15 percent and 25 percent higher than the prices recorded in the weeks before hostilities began.

Data from the fuelo.net monitoring platform illustrates the trend. The average price of A95 petrol in Bulgaria increased from about 1.25 euros per liter on February 27, the day before the US-Israeli attack on Iran, to around 1.36 euros by March 15. Diesel prices have risen even more sharply, climbing from roughly 1.29 euros per liter on February 27 to about 1.49 euros per liter by mid-March.

The caretaker government says its proposed measures are intended to cushion the impact of these increases while maintaining stability in the fuel market and avoiding policies that could distort supply.