Finance Minister Georgi Klisurski commented on the expected rise in fuel prices and its impact on the Bulgarian economy: “The main goal is to protect Bulgarian citizens and Bulgarian businesses from the potential large rise in fuel prices, and accordingly everything else, as you know that fuels are a basic raw material and affect most other goods.“ He added that with continued high oil prices, “the prices of the columns will probably increase between 20% and 25%.“
“If the average price for the year remains around 90 and 100 dollars per barrel, then overall inflation in the Bulgarian economy would increase by between 0.9 and 1.5 percentage points. If inflation is now 4%, it would be 5 - 5.5%“, added the Finance Minister.
Regarding measures to support the most vulnerable citizens, Klisurski specified: “What we are planning and will offer is compensation for the most needy citizens. In fact, targeted social benefits.“ He explained the logic of the aid: “If an average person fills up to 100 liters of gasoline or diesel per month, with an increase of between 15% and 20% in fuel prices at the pump, then these 20 euros will be enough for him to fill up 100 liters per month again, without actually paying anything extra.“
“If someone fills up much more than 100 liters of fuel, potentially he has this opportunity or has not looked for a cheaper alternative. It is very important for us that the aid is not for all citizens, those who have the opportunity, those who have very high incomes, but that it is directed at those in need. That is why we are planning between 1 million and 1.5 million Bulgarian citizens, who have the lowest incomes according to the NRA data. This is for every individual. But if both in the family have low incomes and qualify for this income support, but have one car, then they will only receive these 20 euros per month once“, Klisurski added.
Klisurski also commented on the extended budget and the sources of financing for the compensatory measures: “Ultimately, the money will always come from the budget. Yes, there is some increase in revenues, for example, from VAT, from higher fuel prices, but, of course, these additional revenues will be used to cover these measures, which, for example, we are now proposing, by the way, partially, not entirely. But the money, ultimately, always comes from the budget, which is actually from the Bulgarian citizens.“