Bulgaria’s Finance Minister: No Price Shock if Fuel Holds at €1.60

Finance Minister Georgi Klisurski said that the trajectory of prices across the economy will largely depend on developments in fuel costs, stressing that if they stabilize around €1.60 per liter, a sharp rise in the prices of other goods is unlikely. Speaking in a morning interview on Nova TV, he noted that a further increase, however, would inevitably push up transport costs, which would then be reflected in food prices. According to him, expectations remain tied to the situation in Iran, seen as the root cause of the current volatility.

At present, average diesel prices in Bulgaria stand at around €1.59 per liter, while gasoline remains slightly lower at approximately €1.43. Klisurski pointed out that the government’s previously approved €20 support measure for individuals will only be triggered if fuel prices continue rising over a three-day period.

He warned that if prices climb to between €1.70 and €1.80 per liter, inflation could accelerate by between half and one percentage point annually. With inflation currently hovering around 4%, this could push it to between 4.5% and 5%. Despite this, the minister underlined that current fuel price levels are still below those recorded in 2022.

Klisurski also linked rising electricity costs to energy producers, suggesting that compensating businesses would be an appropriate response. He explained that such support could be financed through surplus revenues in the Electricity System Security Fund, avoiding additional burden on taxpayers while helping to keep electricity prices manageable for companies.

In addition, the government is considering targeted relief for the transport sector. One option under discussion is to refrain from increasing toll charges for vehicles over 3.5 tonnes from April 1, as part of broader efforts to contain the economic impact of rising fuel prices.