We have state fuel reserves at quite good levels, as provided for by law, said Acting Prime Minister Andrey Gyurov on the program "Studio Bulgaria" with host Genka Shikerova on Free Europe/Radio Liberty. Gyurov pointed out that currently all traders maintain the necessary levels of reserves, explaining that according to the law on petroleum products, trade participants are obliged to maintain certain quantities.
In the event of a suspension of supplies and a lack of fuel availability, we could support the market for up to 90 days, plus the quantities available to traders, said Andrey Gyurov.
Regarding the support measures in connection with the increase in fuel prices, Gyurov commented that an analysis has been made of how prices have moved in recent years and that currently the levels are lower than those in 2022, when there was again aid for people and businesses. In his words, this does not take into account the change in the purchasing power of citizens.
“We have calibrated a threshold when prices, based on specific data that we receive from the National Revenue Agency, rise to a level that is above 20 percent of the average that we have seen historically for three consecutive days, then we will make sure that Bulgarian citizens who have the least opportunities do not feel it in their pockets“, said Gyurov and emphasized that the amount of 20 euros for fuel price subsidies is not “invented“.
“The current estimate is around 1.66 euros for diesel. If for three consecutive days the actual price paid is exceeded based on current data that we see when charging, the average for the country will be exceeded, the measure will be activated," explained the acting prime minister.
The decision of the Council of Ministers will be made this month, said Gyurov. According to him, the measure will become active when these limits are crossed. When prices are below the limits, the measure will not be effective, he added. Gyurov explained that people who have their data in the Social Assistance Agency will receive the money directly into their accounts, and mechanisms will be provided for the rest to make this as easy as possible.
It was important not to apply approaches such as “helicopter money“ - that is, supporting everyone, regardless of income, needs and opportunities, said the acting prime minister. Andrey Gyurov explained that the budget's capabilities have also been assessed. We are working with an extended budget, which we expect to be finally voted on this week, the Prime Minister recalled. The government's capabilities are severely limited, but we are ready to help those who are most vulnerable, to do so in a way that does not distort the market, and the measure is limited only to the period of price increases, he explained.
The Prime Minister also said that the hope is that crude oil supplies through the Strait of Hormuz will normalize. Depending on the intensity of the conflict and how long it will last, the pressure on the pockets of Bulgarian citizens will be different, Gyurov commented.
There are no indications that the conflict is decreasing in intensity, he said regarding the situation in the Middle East. There are plans to ensure unhindered passage through the Strait of Hormuz. This will calm things down somewhat, but at the moment more effective measures are releasing quantities of fuel from strategic reserves that will manage to keep the price level on the stock exchanges around $100, he pointed out. The Prime Minister also stated that the situation is being closely monitored by the Bulgarian government.
The refinery in Burgas is operating at about 50 - 60% of its capacity, the acting Prime Minister also said. We want to see actions to increase the refinery's capacity so that the average price per produced quantity is lower and despite the price increase, it is not passed on directly to consumers, he explained and stated that they expect to see actions in this direction. “Lukoil“ has permission to export when it is signed by the “Customs” Agency, added Gyurov. If we motivate where these fuels are going, the quantities will be approved for export. The increase in the refinery's capacity will in any case be beneficial for the region's energy security and curbing the price increase, the prime minister said.
We are in direct contact to know when the deal to sell the assets of “Lukoil“ is close to being concluded. If there is no such deal, we are in direct contact to ensure an extension of the derogation so that “Neftohim“ can continue to operate, added Andrey Gyurov.
According to Andrey Gyurov, the contract with the Turkish company “Botaş“ can be renegotiated. We hope that Minister Traykov's activity in this direction will soon yield results and we will reduce the financial burden on the state, and we will renegotiate the conditions so that the contract becomes possible for actions, we will have competitive gas transmission and we will not pay for capacities that are not used, he said.
The caretaker prime minister also stated that he has prepared a complaint to the Constitutional Court in connection with Bulgaria's accession to the Peace Council of US President Donald Trump. Gyurov explained that they are waiting for the official act of the National Assembly to file the complaint. According to Gyurov, Bulgaria's accession to the council is related to the interests of "one specific person who wants to get off the "Magnitsky" list.
The caretaker prime minister also commented that in the last days of the "Zhelyazkov" cabinet, there were indexations of certain contracts worth hundreds of millions, which were signed in a very rapid manner.
The whole truth must be shown, Gyurov said regarding the "Petrokhan" case.