Bulgaria is deploying more than €300 million in fiscal support to absorb the impact of high fuel prices affecting agriculture, freight transport and vulnerable consumers. The measures are intended to address the effects of a regional oil-price shock on economic activity.
The government’s package includes around €170 million for agriculture, with €100 million earmarked to compensate producers for higher diesel costs across 2025 and 2026. A further €55 million has already been directed towards freight transport. Ordinary petrol and diesel motorists will not receive a broad pump-price subsidy.
Agriculture and freight measures tied to diesel costs
The support package follows sharp increases in refined-product prices across Europe. Diesel is highlighted as particularly important for Bulgaria because agriculture and road freight remain highly exposed to fuel costs. Higher transport costs can feed into wholesale and retail prices, while farmers face direct pressure on machinery, harvesting and logistics expenses.
The government is therefore treating the fuel-price surge as both an inflation issue and a competitiveness risk for sectors linked to diesel use. The policy approach focuses on areas where diesel costs feed directly into food prices, logistics and industrial competitiveness.
Tax changes and targeted assistance for lower-income households
Alongside sectoral compensation, the government is removing excise duty on LPG. It is also allocating around €30 million in one-off assistance for more than 550,000 lower-income people. This combination of tax relief and targeted payments is part of the broader fiscal response to high fuel prices.
The package is described as larger and more targeted towards economic sectors than household-focused interventions. The trade-off is fiscal, with support able to delay the impact of high oil prices without removing the underlying cost if international diesel and petrol prices stay elevated.
Regional policy comparisons on energy-price shock absorption
The Bulgarian measures align with policy responses elsewhere in Southeast Europe that have used tax adjustments to soften diesel increases. Montenegro has reduced excise duties, Croatia continues to manage retail energy prices, and Romania has also used tax reductions related to diesel.
The package also raises questions about how long public budgets across Southeast Europe can be used as energy-price shock absorbers. For now, Bulgaria’s approach prioritises sectors most exposed to diesel costs rather than providing broad pump-price subsidies for all motorists.
