Bulgaria Activates Fuel Compensation as Diesel Costs Surge for Third Day

For the third day in a row, diesel prices in Bulgaria have remained above 1.60 euros per liter, prompting the activation of a government support measure for lower-income citizens, the National Revenue Agency reported. Under this program, a monthly compensation of 20 euros will be provided if fuel prices sustain these levels. Payments are automatic for those already receiving social benefits, while others must apply through social services. Eligibility is limited to households with vehicles that are either owned or leased and covered by valid third-party liability insurance, and only one vehicle per household can receive support. The program will continue until June 30, with the Revenue Agency monitoring prices daily and coordinating checks with other institutions based on actual fuel purchases reported through fiscal receipts, including any discounts.

Diesel costs in Bulgaria reached an average of 1.61 euros per liter late Tuesday, surpassing the psychological 1.60-euro threshold. Ventsislav Pengezov, a gas station owner in Ruse, noted that the price has remained steady since March 20, and any government aid will not fully offset the increase. He calculated that a 100-euro fill-up now costs about 140 euros and observed a decline in consumption. Pengezov added that European fuel reserves are being released and that measures like reduced excise duties in Spain and Italy are helping moderate price hikes elsewhere.

Energy expert Viktor Minchev highlighted the ongoing volatility in global markets, noting that geopolitical uncertainty, particularly regarding the war in Ukraine, keeps oil prices unpredictable. He explained that reductions in stock exchange prices do not immediately translate to lower retail prices, as crude oil must go through refining, distribution, and multiple resellers, with Bulgaria’s limited refinery network affecting competition. Minchev also emphasized that the state’s role should focus on mitigating severe shocks through regulation without directly controlling the market, acknowledging that prices currently hover around 0 per barrel with no guaranteed stability.

This sustained surge in diesel prices underlines the challenge for consumers and policymakers alike, with the government’s compensation program providing targeted relief to those most affected while market volatility continues to shape fuel costs across Bulgaria.