The government is ready to take additional actions if the increase in fuel prices continues after the expiration of the current measures until the end of the year. This was stated by Deputy Prime Minister and Minister of Economy, Investments and Industry Alexander Pulev.
“We are ready, if there continue to be escalations and price shocks, to take other actions“, Pulev said, quoted by the Bulgarian National Television.
The excise tax is at the minimum allowed level
According to the minister, the state has already used almost all the main instruments to limit price pressure - excise tax, VAT and direct subsidies. Excise duties on fuels are at the lowest levels allowed by European rules, and the rate for propane-butane has been reduced to zero.
Pulev pointed out that about 80% of direct aid for pensioners and vulnerable groups has already been paid. The measure is part of the package to support households in the face of rising fuel prices.
VAT on fuels remains an option
Reducing VAT on fuels continues to be studied, but is not among the immediate decisions of the cabinet for now. According to Pulev, such a step would have a serious impact on public finances.
“We have excise duty, we have VAT and we have direct subsidies. We have activated a complete palette of measures“, the minister said. He specified that the possibilities for additional financial support are not unlimited.
No immediate risk to oil supplies
Pulev said that at the moment there are no indications of an immediate threat to cargoes related to crude oil. He referred to a conversation with the special commercial manager of “Lukoil“.
His comment was made after drone strikes on two merchant ships in the Bulgarian economic zone of the Black Sea. According to the minister, the services must clarify whether this is an isolated incident or a broader pressure on transport corridors.
The development of the situation may affect energy security and prices at gas stations. The government will consider whether to extend the current measures or introduce additional ones if price pressure intensifies.
Sources: bntnews.bg, dnes.bg