Fuel prices in Bulgaria remain high, despite the drop in the price of oil on world markets after the announced two-week truce in the Middle East. The topic was commented on by Dimitar Hadzhidimitrov, deputy chairman of the Association of Bulgarian Fuel Traders, Producers and Importers, to bTV.
A barrel is currently below $100, until that day it was slightly below $100, $110. Fuel prices have increased compared to February 28, when the conflict in the Middle East began. This is averaged according to data from the Foello website – 17.4% increase for A95, 34.8% for diesel, which currently averages 1.74 euros per liter, and A95 gasoline is 1.48 euros. If we compare it with last year's Easter, the picture is relatively similar - 19.3% increase for gasoline and a little over 40% for diesel, for gas the increase is 20%.
Regarding the possibility of diesel returning close to 1 euro per liter, Hadzhidimitrov specified: “It will hardly be soon. The next 3-4 weeks are unlikely. Even the next two weeks we will see these prices - over 1.70 for diesel and over 1.45 for gasoline. They fell only one day and for a few hours. The initial interest was that the military actions would stop, but this did not happen. Oil immediately returned by 8-9 dollars“.
Hadzhidimitrov also explained the influence of the local refinery on prices: “Our refinery operates with nearly 100 euros per 1000 liters lower than the market prices for the region“.
He also commented on the slow decline in fuel prices compared to their rapid rise: “Whenever prices are raised, the industry raises them much more slowly, and when they are lowered, it happens much faster, because competition speaks for itself. When large chains have large stocks, smaller ones sell faster and the price of large chains is lowered because it starts to be sold cheaper“.
Regarding the proposal of the Confederation of Bulgarian Trade Unions (CITUB) for a ceiling on mark-ups, Hadzhidimitrov said: “A rather frivolous measure. If a ceiling is put in place, we may have a price, but there will be no fuel because there is nowhere to buy it at that price. Right now, we are all working with a margin of 1-3 cents, and the average price of diesel at the pumps is around 1.74 euros“.
Regarding the global situation and the passage of tankers through the Strait of Hormuz, he specified: “Iran feels harmed because it feels attacked. It is unlikely that anyone will pay 2 million, but there will be some agreement to pay a higher fee. There has always been some fee for passing through the strait, but now there is no one to pay this fee“.
Finally, Hadjidimitrov made a prediction about the possible calming of the market: “In order for the price of the pumps to return to normal levels – around 1.25-1.30 euros per liter, the barrel should reach around 75 dollars and this should hold for a long period. In the next two weeks, with the current truce, prices will hold and will not exceed 1.80 euros. However, if the conflict deepens and the barrel reaches 120 dollars, we will exceed 1.80 euros on the columns“.