The government supported a declaration against the introduction of the European emissions trading scheme for fuels, buildings and transport, known as ETS2. The plan is for it to start applying from January 1, 2028, but representatives of oil associations from Bulgaria, Romania, Greece, Poland, the Czech Republic and Slovakia insist that this should not happen.
According to the chairman of the Bulgarian Oil and Gas Association, Svetoslav Benchev, the scheme could lead to an additional increase in fuel prices by between 20 euro cents and 1.40 euros per liter. “What can be expected as an increase is from 20 euro cents to 1 euro and 40 euro cents additionally on each liter of fuel, if the trading scheme is not postponed after January 1, 2028“, said Benchev.
He defined ETS2 as a “second excise duty“, since the cost of emissions will ultimately be transferred to consumers. According to him, under the current model, the excise duty is paid by the tax warehouse, but its burden is borne by the end buyer.
Proposal for lower excise duty and VAT
Against this background, the GERB-SDF deputies submitted to the National Assembly secretariat a proposal to reduce the excise duty on gasoline and diesel. The package provides for an additional reduction in excise duty by up to 22 euro cents per liter excluding VAT, as well as a temporary reduction in the VAT rate for fuels.
“We want an additional reduction in excise duty by up to 22 euro cents for diesel and gasoline. This is excluding VAT, as a corresponding reduction in the VAT rate“, said MP Zhecho Stankov.
According to Alexander Ivanov, the combined effect would lead to a reduction of about 40 euro cents per liter for the most popular A95 gasoline and about 43 euro cents for diesel. GERB-SDF stated that the measure will ease the burden on end consumers and that the entire opposition is behind the proposal.
The proposal was considered at a meeting of the parliamentary committee on economics, but was not adopted by the ruling majority.
What's next
The government supported the signed declaration against ETS2 and, according to the organizers, it will become a position that the cabinet will defend before the European institutions.
Economic Minister Alexander Pulev indicated that another measure taken was the lifting of the ban on diesel exports. “We heard you, we understood the voice of business and industry. We lifted the ban on diesel exports without this in any way leading to deficits in the Bulgarian economy“, Pulev stated.
Sources: nova.bg