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What's happening with inflation and fuel prices in Bulgaria

The challenge continues in 2025

Снимка: Shutterstock

One of the constant topics that concerns every driver in Bulgaria is the price of fuel. In 2025, inflationary pressure and geopolitical factors continue to influence retail gasoline and diesel prices, making car maintenance increasingly expensive.

Global factors and their impact

Oil prices on world markets remain the main determining factor for the cost of fuels in Bulgaria. Factors such as tensions in the Middle East, OPEC+ decisions on production levels, as well as the state of the global economy, directly reflect on crude oil prices, and hence on those at Bulgarian gas stations. Even when global markets temporarily stabilize, the effect is often felt with a delay in Bulgaria.

Taxes, excise duties and exchange rates

Significant local components are added to international prices. Excise duties and value added tax (VAT) account for a large part of the final price paid by consumers. Any change in these rates, although rare, has a direct and immediate effect. The exchange rate of the lev against the US dollar (in which oil is traded) also plays a role - a stronger dollar means more expensive oil for Bulgaria.

Impact on consumers and businesses

High fuel prices have a significant impact on both households and businesses. For households, this means higher transport costs and less money for other needs. For businesses, especially transport and logistics companies, high fuel prices directly affect operating costs, which can lead to an increase in the prices of goods and services.

Forecasts and alternatives

Analysts continue to monitor the dynamics, but long-term forecasts for a significant drop in prices remain uncertain due to the unstable global situation. Against this background, interest in alternative fuels such as propane-butane (AGU) and methane (CNG), as well as electric vehicles, continues to grow. Despite the higher initial investment, they offer the potential for significant savings in operating costs in the long term.

What are your observations about the short-term future of fuel prices in Bulgaria, you can share in the comments