Fuel prices in our country are rising sharply due to the escalation of the military conflict in the Middle East, and there is a real risk that gasoline will reach two euros per liter. This is what analyst from the Center for the Study of Democracy (CSD) Tsvetomir Nikolov predicted during a television appearance this morning.
"The risk is huge, especially for natural gas. Over the past week, attacks have been carried out on extraction facilities there, which provide about 18 billion cubic meters," said Tsvetomir Nikolov, quoted by Bulgaria ON AIR. The expert recalled that 20 percent of the blue fuel passes through this region, which turns the price effect into a long-term problem.
According to the analyst, a large part of the supplies from the Middle East are being redirected to Asia, where the exchanges are offering higher purchase prices. In order to respond to this growth and maintain its supplies, the Bulgarian market is also forced to raise prices.
"This is where the price shock comes from. This is also happening with oil. This will continue until the war is over," Nikolov was categorical. He added that the markets will experience increasing turmoil, and the price of mainstream gasoline could hit two euros if the geopolitical situation does not calm down soon.
A key factor for a possible normalization of prices is ensuring safe shipping through the Strait of Hormuz. Although the route is not formally blocked, the lack of guarantees for the safety of tankers is deterring traders and inflating risk premiums. In the event of a truce, markets will need nearly six months to restore normal levels.
"A price ceiling is not a solution," the expert summarized, calling on institutions to seek real mechanisms to deal with the crisis and guide consumer behavior, instead of relying on artificial market restrictions.