Bulgaria’s government announces steps to limit impact of high fuel prices

Bulgaria’s government announced on September 18 a package of measures that it said were worth more than 300 million euro to limit the impact of high fuel prices on the public and businesses.

The steps include the abolition of excise duty on propane and butane, a one-time grant of 50 euro for low-income people, support for agricultural producers with nearly 44 eurocents per litre of gas oil, as well as financial support for heavy-duty, public, school and medical transport.

According to the government, some of the measures have already been included in the 2026 budget, and the goal is to ensure that the increase in fuel prices does not lead to additional increases in the prices of food, goods and services.

Among the new proposals is the abolition of the excise tax on propane-butane. The measure will require a legislative amendment, Minister of Innovation and Growth Alexander Poulev said.

Poulev said that the abolition of the excise tax should lead to a decrease in the price of fuel at the pump and ease costs for both those who use cars with gas systems and for some businesses.

The expected effect on the state budget is around 15 million euro by the end of the year , or about five million euro a month.

Poulev said that the government is seeking to target aid to specific groups and sectors, rather than implementing universal compensation. Among the priorities are public transport, school transportation and medical transport.

Particular attention will be paid to small and remote settlements, where some transport lines are not sufficiently cost-effective, but are important for people’s access to services.

Fifty-five million euro has already been allocated to directly support heavy goods carriers.

Separately,170 million euro in state aid for agricultural producers have been provided. Agriculture Minister Plamen Abrovski said that 100 million euro of this amount will be used to compensate for the difference in the price of gas oil between 2025 and 2026.

This means support of nearly 44 euro cents per litre of gas oil, he said.

According to Abrovski, the goal is to prevent higher fuel costs from being passed on throughout the food chain and ultimately leading to additional increases in the price of food products.

He said that the funds are part of the support already provided for the agricultural sector due to increased costs for fuel and fertilisers.

Among the social measures is a one-time “inflation cheque” worth 50 euro. The aid is intended for people and families with low incomes and will cover more than 560 000 people. Thirty million euro are planned for the measure.

Those eligible will include representatives of eight groups, including people who receive targeted heating assistance, families raising children with permanent disabilities, as well as children raised by relatives, close friends or foster families.

The scope also includes recipients of certain family benefits, military invalids and war victims, as well as other vulnerable groups.

The money will be paid out once and without submitting an additional application. Those eligible will be identified ex officio by the Social Assistance Agency, and the funds will be received in the same way that people already receive their other benefits – by card or through a postal operator.

The payout is expected to begin in October.

Unlike previous schemes, this assistance will not require car ownership to receive the funds. Social Minister Natalia Efremova said that rising fuel prices also affect people without cars through higher prices for food and services.

The government said that it would monitor developments in fuel prices and discuss further action if necessary.

According to the fuelo.net website, as of September 18 the price of A95 petrol was 1.67 euro a litre, diesel 1.94 euro a litre and propane-butane 0.68 euro cents.

(Photo: Hippopx)