Fuel measures should be targeted, not for everyone. This was said in the “Interview of the Day” on BTV by Svetoslav Benchev from the Bulgarian Oil and Gas Association.
Within a few days, we have heard first the state, represented by Minister Alexander Pulev, and then the CPC, talk about measures aimed at controlling fuel prices. This also leads to an additional increase in the price of some food products and goods in stores.
On Thursday, the budget committee adopted changes that concern the powers of the special sales representative at the “Lukoil“ refinery - Rumen Spetsov.
“The most important thing that needs to be done is for the measures to be targeted, not like before. Back then, we had a 25 stotinki discount, which was given to everyone. Even then, the European Commission said that this was not the right approach“, explained Benchev.
In his words, what can be done now is to target the most vulnerable groups of the population by eliminating the excise tax on propane-butane, because this is the fuel used by people with the lowest incomes, as it is the cheapest.
“From now on, if the government and the state decide, to create some kind of fund through which to subsidize certain sectors that are most affected - such as farmers, transporters. This fund could have a resource by taking funds from the increased VAT due to higher fuel prices“, Benchev suggested.
Former Energy Minister Rumen Radev said that if prices remain at around $100 per barrel, there is an option for a price reduction of 7-8 euro cents per liter.
Benchev commented that diesel fuel has already started to fall by 5-6 euro cents. “There has been a decrease of about 3% in the price of diesel in the last month. And if the market allows this to happen, it will happen“.
“The price of diesel was high, because at one point there was a very serious demand on the European continent when the crisis began. Now things are already within certain limits, which is immediately reflected in the price of diesel fuel“, he commented.
“I have been repeating for years that there has been no summer price increase in Bulgaria. This time we may see it“, he added.
According to him, there has never been any mark-up in the industry that would be scandalous. “And this is especially noticeable when you open the Commercial Register and see the annual reports of the companies. There you will see that in the best years an oil company has a profit within 2-3%“, explained Benchev.
“Mark-ups during certain periods vary for the simple reason that they depend on the period, the weather and the deliveries. But the final result that is obtained is visible in the annual reports of the companies, which are public. "And it is noted there that the increase is about 2-3%," he said.