The price of diesel increased by 3 cents this morning, and gasoline increased by 1 cent. Fuel prices are expected to continue to rise, with diesel possibly reaching 2 euros per liter by the end of September. This was stated to bTV by Dimitar Hadzhidimitrov, deputy chairman of the Association of Bulgarian Traders, Producers and Importers of Fuels.
According to him, the current average price of diesel is around 1.95 euros per liter, and gasoline – 1.70 euros. Hadjidimitrov expects diesel to increase in price by at least 2 cents by the end of the week, which would bring its average price to between 1.97 and 1.99 euros.
Despite the increase so far, fuel consumption has not decreased. On the contrary - a slight increase was recorded during the summer months. However, the last week has seen a reverse trend, which according to Hadjidimitrov is typical for September and October, when consumption traditionally shrinks.
Among the reasons for the high prices, he pointed to the shortage of diesel on the world market, reduced production capacities and the closure of about ten refineries in Europe in recent years. Additional pressure is exerted by military conflicts, higher insurance for ships and increased transportation costs.
Hadjidimitrov noted that no large purchases of oil and diesel fuel were made during the winter, as market participants expected prices to decrease. According to him, Europe is among the regions most affected by the current situation.
He called for a temporary reduction in excise duties on fuels in the European Union, which he believes could limit price increases and reduce pressure on inflation.
According to him, 6-7 Russian refineries have been attacked in recent months, and supplies to Europe are also heavily dependent on traffic through the Strait of Hormuz. As a result, the market is short of about 4 million barrels of finished petroleum products from Russia and the Hormuz region daily.
Hadzhidimitrov expects the price of 2 euros per liter of diesel in Bulgaria to be reached soon, but does not predict that it will be exceeded by the end of the month. According to him, if the world market stabilizes, oil prices can be kept at around $105 per barrel, and sufficient quantities of diesel can be provided within a month.
He also commented on the state's VAT revenues at higher prices. With an average consumption of 10 million liters of fuel per day, the increase in VAT revenues, according to him, reaches around 20 million euros per month. Therefore, Hadzhidimitrov believes that aid for consumers should be targeted, offering support of 50 euros.