Rising Fuel Costs Hit Consumers in Bulgaria: Diesel Nears €1.60, Government Aid Deemed Insufficient

Fuel prices in Bulgaria continue to rise steadily, with both gasoline and diesel seeing daily increases amid ongoing market instability. In the past 24 hours alone, prices have climbed by two euro cents, prompting many consumers to curb fuel spending as the market shows no signs of stabilizing.

Since the onset of the conflict in Iran, the average price of gasoline has increased by nearly 12 percent, rising from roughly 1.22 euros per liter before U.S. strikes on Iran to 1.40 euros today. Diesel has seen an even steeper climb, up nearly 20 percent from 1.29 euros per liter to 1.55 euros per liter. In the Ruse region, retail prices have surged by about 30 euro cents over the past month, with some gas station operators managing the situation without adding surcharges.

A local fuel retailer explained that wholesale prices have approached 1.55 euros per liter, and he warned that the escalation has not yet peaked. Owners are trying to manage the situation with minimal margins, yet difficulties with deliveries and advance payments are becoming widespread. The retailer expressed skepticism over the government’s €20 aid for the most vulnerable households, noting it is insufficient and based on flawed selection criteria. He also cautioned that continued price growth could lead to temporary closures of gas stations and hinted at emerging risks of fuel shortages.

Experts expect diesel prices to surpass 1.60 euros per liter across much of the country next week, while gasoline will likely remain around 1.45–1.46 euros. Dimitar Hadzhidimitrov, deputy chairman of the Association of Bulgarian Fuel Traders, Producers and Importers, emphasized that the government’s threshold of 1.60 euros to trigger aid is too low compared to past interventions, which provided support at approximately 1.70 euros per liter. He also noted that the current program’s €25 million allocation for one month is far less generous than previous measures, which distributed €90 million over four months.

Hadzhidimitrov further suggested that many recipients of the new aid might not spend it on fuel at all, raising questions about the effectiveness of the policy. He contrasted it with earlier programs where government support directly offset fuel VAT revenues, making the assistance more effective. Despite the daily increases, he reassured that Bulgaria is not facing a fuel shortage and that the market is unlikely to see crude oil prices exceed 0 per barrel, which would further destabilize the situation.