Deputy Prime Minister and Minister of Economy Alexander Pulev announced in the program “Since the Day“ on BNT 1 that, according to the expert opinion of the Commission for Protection of Competition (CPC), price pressure was exerted at the beginning of the year by the previous special manager of “Lukoil” Rumen Spetsov.
“The refinery operates at a very low rate of return, unlike the previous special commercial manager, who, not in my opinion, but in the opinion of the Commission for the Protection of Competition, exercised price pressure, which led to a very serious liquidity and financial crisis in the structures of “Lukoil“, said Minister Pulev.
The Minister of Economy said that this policy has led to many financial difficulties at the “Lukoil“ level, because it has been operating almost at cost and has created a serious shock in the system for the operators of the various sites, gas stations, who have been forced to operate at a loss for a short period of time.
Pulev described this approach as unsustainable, populist and set as a “political trap“ for the next manager. According to him, such a practice could have lasted a maximum of 2-3 months without leading to the refinery's bankruptcy.
The Minister pointed out that with the support of the "Borisov" cabinet and political structures, the law was changed to give extraordinary powers to Spetsov. Pulev also announced that Spetsov himself had set a monthly salary equal to 5 annual average salaries for a Bulgarian citizen. The Minister of Economy added that a few days ago Spetsov had filed claims for an additional one-time payment and is currently suing "Lukoil" for an amount equal to 32 annual average salaries. An international independent audit is being prepared on these issues, Pulev added.
The Minister of Economy pointed out that the new special manager Evgeni Simeonov leads a socially engaged, but "intelligent and sustainable" policy. The refinery operates at a minimum rate of return that covers operating costs, protects liquidity and prevents bankruptcy, while guaranteeing some of the lowest fuel prices in the EU, the Minister of Economy pointed out.
Pulev said that the Ministry welcomes the urgent inspection launched by the CPC for the transparency of pricing, and the special administrator will provide full accounting and financial information.
Regarding the decision to lift the ban on the export of petroleum products, Minister Pulev said that it is aimed at the entire industry in order to maintain its competitiveness, and not as a special privilege for a specific producer. He specified that due to the increased operating capacity of the refinery, diesel stocks have accumulated, in which over $200 million of working capital is blocked. According to the Minister, since the domestic market has a limited consumption capacity, exports to third countries allow the release of this liquidity. The Minister also commented that the measure is neutral to the final prices of the column and aims only to ensure liquidity and continuity of operations.
When asked why the 33 percent tax on excess profits does not affect the refinery, Pulev replied that the company has no prerequisites for excess profits, as it operates at a minimum margin of return and overcomes the inherited liquidity crisis.
The Minister of Economy pointed out that the price spike is a consequence of global geopolitical processes and reminded that the state provides packages of measures for the most vulnerable groups and the structurally determining sectors of the industry.
Minister Pulev noted that Bulgaria is positioning itself excellently before the European institutions. In connection with the mission of the International Monetary Fund in our country, he said that the country is expected to receive a balanced and constructive position from the fund against the backdrop of inflation.