Fuel Prices: Diesel Sees the Sharpest Increase

A new surge in fuel prices has hit the country. Experts link the rise to the sanctions against Lukoil and predict that prices will continue to rise until the end of the year, though not dramatically. The steepest increase is in the price of diesel.

In just one month, the price of diesel has gone up by 12 stotinki per litre, that of petrol by 5 stotinki per litre, and gas by 2 stotinki per litre. According to experts, the increases stem from the US sanctions imposed on Lukoil.

"At the moment, because trade is restricted not only in our country but globally, there is strong demand for Russian diesel fuel in the region, and the inability to process payments has pushed diesel prices significantly higher over the past two to three weeks. We’re talking about an increase of around 20 stotinki per litre at wholesale level. At the pump, we’re seeing a rise of 10–11 stotinki, which suggests that over the next two to three weeks we’ll likely see an additional increase of 7–8 stotinki at the pump for diesel. Petrol has risen by about 7–8 stotinki and is expected to stabilise. Gas shows no change," said Dimitar Hadzhidimitrov from the Association of Fuel Traders, Producers and Importers.

Uncertainty surrounding Lukoil’s operations in Bulgaria has also led to increased demand for fuel.

"People hear there may be problems and start filling up extra fuel. Over the past two weeks, there has been more work than is usual for the season. I expect that once news comes out that things are under control, demand will ease and next week people will fill up less. I think overall consumption is normal and for the season it's going as it has in previous years," added Hadzhidimitrov.

Public reactions to the new fuel prices are mixed.

"In my view, they’re unreasonably expensive."

"As long as you’re not lazy and you work, everything is fine — nothing is expensive. We just earn too little."

"For now it’s manageable. But if this trend continues, things will become very serious."

Over the past 12 months, average prices for the most common petrol and diesel have hovered around BGN 2.50 and BGN 2.70 per litre. Expectations are that prices will remain within these levels until the end of the year.