site.btaGovernment Keen on Protecting Individuals and Businesses from Potential Fuel Price Surge

The primary goal of the Cabinet and the Ministry of Finance is to protect Bulgarian citizens and businesses from a potential surge in fuel prices, as these affect most goods, said caretaker Finance Minister Georgi Klisurski in bTV’s weekly programme “120 Minutes” on Sunday.

Klisurski explained that analyses are being conducted on how fuel prices would respond to increases in crude oil. Current scenarios focus on a rise from USD 70 per barrel – the pre-Iran conflict level – to USD 90–100 per barrel on average for the year. Prices of USD 150 per barrel are considered a pessimistic scenario. He added that, if prices average USD 100 per barrel long-term, petrol at filling stations could appreciate by 20–25%. The hope is that the conflict will resolve quickly, easing the global price shock.

If oil remains at USD 90–100 per barrel over the year, inflation in Bulgaria could rise by 0.9–1.5 percentage points, taking it from 4% to roughly 5–5.5%.

Regarding support measures for higher fuel costs, Klisurski noted the government has a package expected to be approved by the Council of Ministers this week. On funding, he stressed that all additional spending ultimately comes from the state budget, i.e., the citizens, and must therefore be proposed carefully rather than for populist appeal.

Parliament approved the extended state budget at first reading on Friday, allowing three days for additional proposals before second reading on Monday. Klisurski warned that any extra spending proposed then could further strain the budget in the absence of a regular one, calling such actions irresponsible.

He expressed hope that Bulgaria will adopt a regular budget by mid-year. Should the next parliament fail to form a majority to pass it, the caretaker government will take steps to propose a regular budget, even without parliamentary support, to ensure fiscal stability.