No crude oil supply to Bulgaria has been refused and not a single tanker headed for the Burgas refinery has been suspended or refused. This was stated by Deputy Prime Minister and Minister of Economy, Investments and Industry Alexander Pulev in the BNT program “The Day Begins with Georgi Lyubenov“.
“As of now, I have also had conversations with the special commercial manager - we have not had a single refused crude oil supply. We do not have a single rejected tanker that would be insured so that it could come to the refinery so that it could be processed into refined products“, Pulev said.
Tanker supplies and insurance
According to the Deputy Prime Minister, the derogation received from the United Kingdom is of key importance for the continuation of supplies. Over 90 percent of tankers that transport crude oil are insured by British companies.
Pulev said that without the exception, the possibility of insuring vessels would be blocked, and this could stop supplies to Bulgaria. At the moment, there is no such blockade, and the refinery is operating at high capacity and is building buffers to respond to a possible negative escalation in the crude oil market.
The minister indicated that the state has prepared action plans in the event of a complete stoppage of shipping in the region. He added that the goal is not to export excess profits to foreign owners.
Measures for fuel and industry
Regarding fuel prices, Pulev said that Bulgaria continues to maintain some of the lowest levels in the European Union. According to him, this is due to the measures taken and local processing.
The compensations will be targeted at the most vulnerable groups and the working poor, so as not to create additional fiscal deficit and inflationary pressure by distributing funds "for free". The minister described the reduction in VAT on fuels as the "red button" of the budget. According to him, a sharp drop in the rate would lead to a serious drop in revenues, so the measure can only be used selectively and as a last resort in the event of price escalation.
Pulev also stated that there will be no increase in the price of heating for citizens during the upcoming heating season. It is also planned to preserve and improve the compensatory mechanisms for the energy-intensive industry, which forms about 25 percent of the gross added value and provides over 280,000 jobs.
A recapitalization of the Capital Investment Fund at the Bulgarian Development Bank is planned. Instead of distributing subsidies free of charge, the state will be able to support enterprises in a liquidity crisis by acquiring a minority stake. After overcoming the difficulties, the companies will have the right to buy back the state's shares.
Sources: bta.bg