The Bulgarian Commission for Protection of Competition (CPC) has unveiled a comprehensive set of 23 emergency and long-term measures aimed at stabilizing the nation’s fuel market, in response to heightened geopolitical tensions and fluctuating global oil prices. This initiative follows an extensive investigation initiated in March, which was prompted by escalating conflicts in the Middle East that threaten fuel supply security and pricing stability.
The CPC’s report encompasses all critical segments of Bulgaria’s fuel value chain, including refining, imports, storage, wholesale distribution, and retail sales. It also assessed the effectiveness of crisis management strategies implemented by the caretaker government during periods of market volatility. A key finding indicates that while government intervention has mitigated some price increases, it has not completely arrested the upward trajectory.
Significantly, the CPC identified market distortions linked to the appointment of a special administrator overseeing Lukoil’s operations in Bulgaria. Discrepancies between wholesale and retail fuel pricing at Lukoil-operated stations have further strained smaller traders and importers. Following CPC’s intervention earlier this year, problematic pricing practices were reportedly halted.
A notable recommendation from the CPC is the establishment of a permanent fuel market task force under the Council of Ministers. This task force would consist of state institutions and industry representatives tasked with monitoring fuel availability, price fluctuations, storage levels, and supply risks. Additionally, the introduction of a weekly official fuel index is proposed to enhance market transparency by publishing international benchmarks alongside domestic pricing data.
The CPC’s recommendations also include stricter oversight across the entire fuel supply chain—from refinery operations to retail distribution—and developing contingency plans for maintaining refinery continuity. Efforts to diversify crude oil supply sources are emphasized as essential for long-term stability.
Several proposals specifically address sectors heavily reliant on fuel costs, such as transport, agriculture, fisheries, and fertilizer production. The Commission suggests implementing compensation mechanisms to alleviate increased operational costs during periods of elevated fuel prices.
Moreover, short-term stabilization tools are included in the package, featuring liquidity support mechanisms and guarantees for strategic fuel reserves. A temporary fuel stabilization fund financed by additional VAT revenues from higher fuel prices is also proposed to cushion against extreme price pressures.
Temporary anti-speculation measures and adjustments to biofuel blending obligations are recommended as flexible responses during prolonged market stress. The CPC also advocates for systems ensuring full supply chain traceability for producers and importers.
On a broader scale, long-term structural reforms are necessary to enhance access to tax warehouses and expand fuel storage infrastructure while encouraging new entrants into the market. Reducing dependency on fossil fuels through transport electrification and energy efficiency initiatives is highlighted as a critical objective moving forward.
Simultaneously, investigations into Lukoil for potential abuse of dominant market position remain ongoing. The CPC has requested detailed operational data from Lukoil Neftochim Burgas and other significant wholesalers operating within Bulgaria’s fuel sector as part of these inquiries.
