Reducing VAT on gasoline and diesel could lower the price by up to 20 cents per cylinder. This was explained by former Minister of Economy Lachezar Borisov on the air of “Offensive with Lyubo Ognyanov“ on NOVA NEWS.
According to him, such a measure could have a tangible effect on fuel prices, but its implementation must be consistent with the capabilities of the state budget. “The question is how the budget would afford it and what else the state would have to do to implement the measure“, Borisov pointed out.
He gave examples of other European countries in which measures have been taken to reduce the tax burden in order to limit inflation. According to him, it is necessary to discuss direct anti-inflationary measures that would mitigate the effect of the increase in energy prices on households and businesses.
♦ Higher insurance makes oil supplies more expensive
The former Minister of Economy also commented on the impact of military actions and shipping risks on oil supplies to Bulgaria. According to him, the increase in insurance costs and the possible extension of transport routes could increase the cost of the raw material.
Borisov cited information according to which the insurance of a single ship has increased from $200,000 to $2.5 million. This represents a 12.5-fold increase.
“This, calculated per ton for crude oil, is a $17 increase in its cost price“, he explained.
According to him, if the production structure of the Bulgarian refinery is taken into account, this could lead to an increase in the cost price of diesel and gasoline by about 1 to 1.5 cents.
Borisov noted that ships may start choosing safer, but longer routes, which would also increase transportation costs.
♦Black Sea is the best option for supplies
According to the former Minister of Economy, the best option for supplying the refinery is via the Black Sea. He pointed out that according to the information available to him, Bulgaria mainly uses oil that arrives from Kazakhstan.
„So I sincerely hope that there will be higher security in our economic zone and in our territorial waters“, Borisov said.
♦ Will there be a shortage of diesel?
Borisov also commented on the decision to lift the ban on diesel exports amid concerns about fuel shortages. He pointed out that according to a report by the International Energy Agency, a global shortage is expected in the first half of 2027. And specifically diesel fuel.
According to him, in order to properly assess the effect of allowing exports, more information is needed from the refinery.
According to Borisov, the increase in the price of gasoline and diesel could have a lasting effect on inflation, since fuels are involved in the costs of transportation, production and delivery of goods.
“So maybe we should think about anti-inflation measures that are direct, not adaptive“, Borisov said.