Bulgaria’s fuel traders: Price increases result of external factors, not the euro
Increases in the prices of fuels are the result of external economic factors and developments on international markets and are not related to the introduction of the euro in Bulgaria, it was agreed at a meeting on April 22 between the Competition Protection Commission (CPC) and representatives of Bulgaria’s fuel trade business.
A statement by the CPC said that representatives of the Association of Bulgarian Traders, Producers, Importers and Transporters of Fuels presented information on market processes and price dynamics in the sector, as well as data on the increase in wholesale prices of fuels in a short period of time, including petrol and diesel, with the increase outpacing the dynamics of final sales prices.
According to the association, in a number of cases, retailers are operating with minimal or negative margins, against the backdrop of increasing costs for transport, additives, energy, labour and maintenance.
The issue of the extent to which the existence of market practices, in which fuels are sold at prices below their full cost, can lead to a distortion of the competitive environment, affect smaller market participants and cause a shock price spiral, was also discussed, the CPC statement said.
The statement said that the information provided would be analysed and included in the ongoing proceedings of the antimonopoly authority against the Lukoil Group in Bulgaria, initiated in 2025.
The proceedings aim to establish possible violations of the competitive environment in the fuel market, including possible practices related to a dominant position and restriction of competition in the supply chain.
In Bulgaria, according to the fuelo.net website, while the average price of a litre of A95 petrol was 1.25 euro on February 27 (the day before the beginning of the US-Israeli attacks on Iran), as of April 22 it is 1.50 euro. That has been the average price since April 14.
While the average price of a litre of diesel was 1.29 euro on February 27, as of April 22 it is 1.79 euro, according to the website. That has been the average price since April 16.
The meeting between the CPC and the association coincided with the European Commission’s announcement of its proposed accelerateEU, which it describes as “the Commission’s toolbox to bring immediate relief to European households and industries, especially the most vulnerable ones, while putting Europe on a steady pathway to energy independence”.
Since the escalation of the conflict in the Middle East, the EU has spent an additional 24 billion euro on energy imports due to higher prices – without receiving a single extra molecule of energy, the Commission said.
AccelerateEU presents both short-term and structural measures with longer-term effect to further reduce dependency on volatile fossil fuel markets and build Europe’s resilience against future risks based on homegrown clean energy and electrification, it said, with the Commission posteing a Q and A on its proposals.
(Photo: Hippopx)
