The Bulgarian Commission for Energy and Water Regulation (KEVR) approved a 1% reduction in wholesale natural gas prices for June 2026. The decision followed a proposal submitted by public supplier Bulgargaz in mid-May. The updated wholesale price is set at 35.62 euros/MWh, excluding VAT and excise duties. The change comes after a 5% increase approved for May.
June pricing level versus European hub benchmarks
The June wholesale price is more than 10 euros/MWh (around 25%) below prices seen on major European gas trading hubs. This marks the third consecutive month in which Bulgarian consumers have received gas at levels described as significantly cheaper than broader international market prices. The regulator’s approval therefore keeps the domestic pricing track aligned with the latest month-to-month adjustments.
Azeri supply and LNG procurement support market stability
Bulgaria’s long-term supply agreement with Azerbaijan is cited as a key factor behind the stability in pricing. The full contracted volume of Azeri natural gas delivered via the Greece-Bulgaria interconnector (IGB) has been incorporated into the June pricing structure. Additional volumes are also covered through liquefied natural gas (LNG) purchases.
Bulgargaz acquires LNG cargoes through competitive tender processes, according to the regulatory analysis. This approach is referenced as strengthening both diversification and supply security for the Bulgarian market. The same analysis links Azerbaijani deliveries to insulation of domestic prices from sharper increases recorded elsewhere in Europe.
Scope of regulated sales and outlook for July formula changes
The approved pricing applies to Bulgargaz sales to gas distribution companies, as well as to licensed industrial consumers and district heating operators. From July onward, the pricing formula under Bulgaria’s long-term agreement with Azerbaijan is expected to be revised. The revision is tied to higher global oil prices recorded over the previous quarter.
Separately, analysts point to additional factors that could affect costs later in the year. European countries are increasing storage injections ahead of the winter season, while competition for LNG cargoes between Europe and Asia remains intense. Ongoing geopolitical risks affecting major energy supply routes are also cited as potential contributors to tighter conditions and higher prices in the second half of the year.
