Fuel prices in Bulgaria are unlikely to decrease before the end of the year, while the security of fuel supplies is increasingly under threat because of the continuing tensions in the Middle East, according to the Bulgarian Petroleum and Gas Association.
Fuel traders predict that smaller petrol stations are at risk of closing by the end of the year, potentially leaving smaller settlements without access to fuel
Although fuel prices at one petrol station in Ruse were two euro cents lower today, drivers were cautious when filling up.
Krasimir Valev - driver: “I’m buying less fuel now because I have to dig deeper into my pocket.”
Adriyan Malakov, bus driver: “I transport people on excursions, but the number of trips has fallen dramatically. Fuel prices are definitely the reason.”
The station’s turnover in April was 20% lower than during the same period last year.
Ventsislav Pengezov, petrol station owner: “Prices have reached levels we have never seen before. Naturally, this has affected consumption, because wages have lagged behind.”
The industry’s biggest concern is that the dynamic changes on global markets could put fuel supplies at risk after June.
Ventsislav Pengezov, owner of a petrol station: “The situation is far from encouraging because, as we saw yesterday, Trump proposed to Congress the removal of the federal fuel reserve, which is a clear sign that the crisis is not going to be resolved any time soon. This means that many more buyers will be competing for the available quantities of oil, and wealthier countries may be able to offer higher prices.”
Representatives of the Bulgarian Petroleum and Gas Association also warned on the BNT's morning programme that there is a growing gap between market expectations and the actual prices seen on futures markets.
Svetoslav Benchev - Chairman of the Bulgarian Petroleum and Gas Association: “The prices we are seeing are for three to four months’ time from now. If futures are showing 100 dollars per barrel, Norwegian oil was being sold last week for 155 dollars per barrel. Iraqi oil that managed to pass through the blockade was sold for 140 dollars per barrel. In other words, the real prices are significantly higher.”
Fuel traders, however, believe there are possible solutions to the problem.
Ventsislav Pengezov said: “The quickest measure would be to remove biodiesel and reduce VAT.”
Today, the average price of the country’s most widely used petrol stands at €1.52 per litre, while diesel is priced at €1.78 per litre.
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