Fuel prices traditionally go up in the run-up to the holidays. A new increase is expected in the coming days. The forecast is made by the Association of Fuel Traders, Producers, Importers and Transporters.
A year ago at this time, the price for a litre of A95 petrol was on average BGN 2.10, for diesel BGN 2.09 and for gas BGN 1.10.
The average price of a litre of A95 petrol this week is BGN 2.95, diesel is BGN 3.9 and a litre of gas costs BGN 1.60.
The Association of Bulgarian Fuel Traders, Producers, Importers and Transporters expects a new increase in the coming days.
"If the trend of the last two or three days continues, prices will not be down. A slight increase is expected. For the simple reason that diesel and petrol futures prices have risen on the international markets. This will not immediately affect the petrol stations pumps, but if it stays like this, in a week there may be a slight increase of about one, two, three coins a day," said Dimitar Hadjidimitrov, deputy chairman of the Association of Traders, Producers, Importers and Transporters of Fuels.
"Unfortunately, it is happening around the holidays again, but the fault is not really with the players on the market. The international situation is very unpredictable. We won't see a price above 3.15 BGN before the holidays. This is my personal opinion," added Dimitar Hadjidimitrov.
"From last year to now we have approximately 40% increase in petrol and diesel prices, such an increase will prove negative for the development of the Bulgarian economy," added economist Rumen Galabinov.
The Bulgarian Oil and Gas Association does not expect a serious change in prices over the Easter holidays and specified that there could be a shock increase only if an embargo on Russian oil imports is imposed. But even then, prices are not expected to reach BGN 4 per litre.
"This will not be a case of Bulgaria alone, but of the entire European Union if such an embargo is imposed. This could lead to a shock increase in fuel prices in the country. Very rough calculations show about 50-60 coins rise per litre for diesel. Similar rise would be for petrol. Above the current price," said Svetoslav Benchev, chief lawyer of the Bulgarian Oil and Gas Association.
According to MP Nastimir Ananiev, there should be no talk of increasing, but reducing prices.
"For me there seems to be some kind of cartel and it is very important to see where the commission for protection of consumers is, whether they are doing any checks in this direction, because on the international exchanges prices have fallen, there is no drop here, which means that at the moment the big players are making a big margin," said Nastimir Ananiev.
The Commission for Protection of Competition refused to comment on the issue and explained that they are doing checks.
“We have not heard anything - what is happening with these checks. For me, they are not doing their job and this body should be changed because, given inflation, there is a lot of speculation, opportunities for cartels, but they are very passive, from my point of view. I don't see any activity on their part," Nastimir Ananiev explained.
The big petrol stations rejected the cartel accusations.
"So far the CPC has not found anything, because there is no cartel. There has never been a cartel in Bulgaria and there never will be. Let's not confuse profit with margin. Margin is not just for profit, the margin between the wholesale price and the retail price is actually what each trader uses to cover costs. They are not small at all," said Svetoslav Benchev, chief lawyer of the Bulgarian Oil and Gas Association.
However, according to Nastimir Ananiev, proof of big profits is that some small petrol stations sell fuel 20 coins cheaper than the big ones.
BNT: Why don't the big petrol stations cut the prices by those 20 coins (0,35 BGN)?
"We did some calculations, I can't claim great accuracy in this, but we calculate that they should have a profit of about 35 coins (0,35 BGN) at the moment. I think prices should come down by at least 20 coins (0,20 BGN) at this point, both for diesel and for petrol. They are currently making an excess profit," said Nastimir Ananiev.
The Bulgarian Oil and Gas Association explained the difference this way. Everyone has the opportunity to sell the products at price they decide. Accrdingly, when it has the opportunity, to offer at a lower price. At smaller petrol stations the price is lower because they have less costs. In a small petrol station there is one cashier, sometimes even the owner of the site works. Whereas in the big chains there are staff, shops, it's a much bigger cost both for people and electricity and all sorts of other consumables. In this sense, our costs, I mean those of the larger chains, are more significant than those of the smaller petrol stations and therefore the mark-up is a bit higher," said Svetoslav Benchev, chief lawyer of the Bulgarian Oil and Gas Association.
According to him, the real profit of each company is 3, three and a half coins (0,03 BGN) per litre, with the profit varying between one and one and a half percent of what we see at the pumps per litre of fuel.
The small petrol stations explain that those who sell at 20 coins (0,20 BGN) cheaper will soon not be able to afford it.
"Some of the small petrol stations rely on some turnover just to keep their clients. I give you an example, the difference in petrol that you say is 20 coins cheaper, these colleagues who are selling at the low price are selling it through 3-4 ccoins margin, which is mindless. They cannot afford the cost of insurance and salaries. Hence why they are doing it and how long they will do it is their problem. But, if this goes on for more than 3-4 months, it means there is something wrong with the petrol station that is offering this price and the authorities need to step in and check why this person is selling through a 3-4% markup for so long. This petrol station is selling at a 12 coins mark-up, which is reasonable in the situation. Temporarily, yes. Normally, fuel should be sold at 14, 15, 16 coins mark-up, and that is without VAT, which would mean about 20 coins to cover the costs of an outlet, and profit ...for the investment," said Dimitar Hadjidimitrov, deputy chairman of the Association of Traders, Producers, Importers and Transporters of Fuels.
BNT. - How much is their profit?
"About 24-25 coins, but they don't sell much, believe me. There are not that many sales," Dimitar Hadjidimitrov added.
BNT: Prices have not changed in recent weeks. However, there was downward trend on the international markets. Why now, when an upward trend is expected, the prices will be going up and did not go down previously, when they were going down at the international markets?
"For a very long time all of us in the industry were operating on a 4-5 coins profit, which is insane. There is no way you can survive on 4-5 coinsi profit. We all deliberately kept the price below BGN 3 so that this psychological threshold would not be passed," added Dimitar Hadjidimitrov.
A report by the Association of Traders shows that over the past three weeks consumption has fallen by nearly 30%. And customers say that in order to travel with their cars, they are cutting other expenses.
"I have to spend less on food, on everything. Because I travel. I work all the way from Bankya. Every day I travel 30 kilometers to work, the petrol prce is 3 BGN and it was 1.60 BGN last year. The difference is very big," says Zhivko Georgiev. He pays 200-250 BGN a month for fuel because otherwise he cannot go to work and travel.
In order not to raise prices for customers, fuel traders propose to reduce the value added tax (VAT).
"If the state has set 40 coins (0,40 BGN) for VAT per litre, when it reaches 50 or 55 coins, VAT can be reduced by 5 per cent so that this difference remains with the citizens. That's another 25 coins (0,25 BGN) or so, prices can be maintained if we have to sell at 3.50 so we can sell at 3.20," said Dimitar Hadjidimitrov, deputy chairman of the Association of Fuel Traders, Producers, Importers and Transporters.
"At these higher prices, the reduction in VAT should not have a big impact on the revenue side of the budget. It is a matter of calculations and proving that even a reduced VAT will not cause the budget to suffer, but will benefit consumers and traders. A reduction in VAT of 5% should not have a fatal impact on revenue, even of 10%, if calculated well," economist Rumen Galabinov added.
"We have also discussed with colleagues whether VAT on food products could be lowered, but we have not discussed fuel," Nastimir Ananiev added.
The excise duty on fuel was discussed in the National Assembly. A week ago, Bulgaria proposed the minimum rate to be reduced by half. The proposal is being analysed by EU finance ministers.
"We are currently at the lowest rate possible. We need deregulation, which at this point I don't see it happening. For me personally, we have to think of measures that the end consumer can see and feel. Because it will help business, but we want to actually give a hand to the end user. To all Bulgarian members of the public," said Nastimir Ananiev.
BNT: What measures are being considered?
"I will keep them secret for now, they will be announced soon. One of the things, you know in the EU, not everywhere, but many countries give a financial incentive for purchase of electric car, which is quite expensive," said Nastimir Ananiev.
"Fuel will get cheaper if crude oil also gets cheaper," predicted Svetoslav Benchev, chief lawyer at the Bulgarian Oil and Gas Association.
Customers say they will continue to fill up in small quantities, expecting fuel prices to be lower the next day.
Чуйте последните новини, където и да сте!
Последвайте ни във Facebook и
Instagram
Следете и канала на БНТ в YouTube
Вече може да ни гледате и в TikTok
Намерете ни в Google News