site.btaDemocratic Bulgaria Proposes Fuel Compensation for All Motorists

Speaking to reporters in Parliament’s lobby on Wednesday, Yes, Bulgaria Co-Chair and Democratic Bulgaria MP Ivaylo Mirchev proposed that fuel compensation be provided to all motorists. “We propose a compensation of EUR 0.20 per litre for ordinary petrol, diesel fuel and LPG purchased at filling stations,” Mirchev said.

In his words, fuel prices in Bulgaria were reaching “unprecedented levels”, while the budget deficit was also at unprecedented levels, making fuel prices exceptionally high. He said that the authorities had taken measures in the past, but said that no such action could currently be seen.

According to Mirchev, it was necessary to establish why fuel prices were so high and whether the reason was solely the situation in Iran or whether factors at the Lukoil refinery and along the fuel supply chain to filling stations were also involved. He added that his party would initiate such an inspection.

Mirchev said the proposed measure was within the government's means, would not increase the budget deficit and would be quickly offset by revenue from value-added tax (VAT). He called on Prime Minister Rumen Radev and the government to implement the measure by the end of the week.

According to him, the higher fuel prices were currently generating enough VAT revenue to fully offset the proposed EUR 0.20-per-litre compensation, with some revenue left over. He argued that lowering prices below their current level would stimulate consumption, whereas when the price of a litre exceeds EUR 2.00, this no longer stimulates consumption and was becoming unbearable for people.

Asked about the results of a similar measure introduced in the past for certain social groups, who received EUR 20 per month in fuel assistance, Mirchev said fuel prices had not been at today's levels at the time. He therefore stressed that the proposed EUR 0.20-per-litre compensation should now apply to everyone.