Embargo on Russian oil imports may lead to fuel shortages on the Bulgarian market

If an embargo on Russian oil imports is introduced in Bulgaria, it may lead to a shortage of fuel on the Bulgarian market, the industry said. Separately, there will be a significant increase in prices of the most used types.

The largest refinery in the country is using less and less Russian oil, and for the last six months, it accounts for about 50% in the created mix.

"But if extreme manifestations of bans on Russian oil happen again, we cannot guarantee anything. So far neither logistics nor technology has been worked out," said Ilshat Sharafutdinov, chairman of the management board of Lukoil Neftohim Bourgas AD

The refinery may have to be shut down in the event of a complete substitution of Russian fuel.

"Some oils we have processed and we can process them, some we haven't, and there are some that can't be supplied, they are bituminous, they don't flow at all, Venezuelan, for example," Sharafutdinov said.

In the last year alone, retail fuel prices in the country have increased by between 40 and 50 per cent, with a rise of between 15 and 20 per cent since the beginning of January.

The change of fuel for the Bulgarian largest refinery is not so much of a concern to the industry as are possible oil shortages and price increases.

"The refinery cannot operate without Russian oil at the moment. If some kind of oil embargo is imposed, the price will certainly rise to some extent, and the difference with what we see in neighbouring countries like Romania and Greece is a difference of between 20 and 30 stotinki (cents)," said Svetoslav Benchev of BPGA (Bulgarian Petroleum and Gas Association).

If Bulgaria stops importing Russian oil, there will be a fuel deficit

Experts also predict an increase in prices.

"The cost of transporting crude oil from further away will be greater plus there will be competition for the tankers that are available on the world market, which will make fuel more expensive, but purely physically we should have no problem with refining other types of oil," said Martin Vladimirov of the Centre for the Study of Democracy.

Bulgaria is at this moment against the introduction of an embargo on Russian oil imports, insisting on a delay of between 12 and 24 months.