Support measures due to high fuel prices should be targeted and temporary. This was stated by former energy minister Traycho Traykov on bTV, against the backdrop of measures being prepared by the government for 300 million euros and expectations that over half a million Bulgarians will receive aid, reported Focus and BTA.
According to Traykov, state support makes sense if it is targeted at the most vulnerable groups or at sectors where the pass-through of inflation can be limited. He stressed that such measures should only be in effect for as long as the emergency lasts and should not become a permanent budget item.
Focus on the vulnerable, not on everyone
Traykov gave the example of transport and pointed out that he saw no point in the state supporting producers of exchange-traded goods, since their production is sold at international prices. According to him, with such assistance, the consumer will not feel the effect, and producers can increase their margins and profits.
He also commented on the reasons for the high fuel prices, linking them to the conflict in the Middle East and its impact on international markets. According to him, markets are adapting, and the world's dependence on crude oil is less than it was 20 years ago.
Transparency along the entire chain
The former energy minister insisted that the state monitor prices along the entire chain - from the import of crude oil to the sale of fuel at gas stations. He pointed out that transparency is needed both in input prices and in operating margins in the processing and sale of finished products.
Traykov also commented on the idea of wider use of public transport instead of private cars. According to him, it is worth investing in measures to contain the prices of public transport, as well as in experiments with free transport for certain periods.
He described the approach of compensation with a fixed amount for everyone who refuels as inappropriate. According to him, with such a measure, the price dynamics remain the same, and the state bears a significant expense.
On the topic of a possible reduction in the excise duty on propane-butane, Traykov said that this is theoretically possible, but it is not easy and cannot be implemented quickly, as it requires coordination with Brussels.
Focus and BTA recall that the topic of rising fuel prices remains among the main economic topics in recent days, and the government has been preparing measures aimed at the most vulnerable households and businesses.
Sources: Focus, BTA, bTV