Bulgaria’s Energy Minister Calls for Lukoil Manager to Prioritize Consumers Amidst Global Oil Price Volatility
Amidst rising global oil prices spurred by geopolitical tensions, Bulgaria’s acting Minister of Energy, Traycho Traykov, has urged Rumen Spetsov, the manager of Lukoil’s Bulgarian operations, to balance shareholder rights with the needs of Bulgarian consumers. This call comes as concerns mount over potential price increases at the pump.
Oil Price Surge and Impact on Bulgaria
Traykov attributed the recent surge in oil prices to escalating conflicts, specifically referencing US and Israeli actions impacting the Strait of Hormuz – a critical waterway for global oil transport, handling approximately 20% of the world’s oil and 25% of its liquefied natural gas [Fakti.bg]. He reported a 6% increase in fuel prices at Bulgarian gas stations, correlating to an approximate 20% rise in crude oil costs [Fakti.bg].
Lukoil’s Role and Consumer Protection
Traykov emphasized that approximately 90% of Bulgaria’s fuel consumption is met by the Lukoil refinery in Burgas, effectively managed by Spetsov [Fakti.bg]. He urged Spetsov to consider the rights of Bulgarian consumers while also respecting shareholder interests, asserting that the refinery’s management has the power to mitigate price increases. “The responsible manager of the refinery can protect the rights of the shareholders, but without making excessive profits at the expense of consumers,” Traykov stated [Fakti.bg].
Natural Gas Supply and Storage
Regarding natural gas supplies, Traykov noted that Europe, including Bulgaria, is currently replenishing gas storage for the upcoming heating season. He advised against immediate injection of gas into the Chiren underground storage facility, anticipating higher prices [Fakti.bg]. Still, he highlighted that Bulgaria’s Chiren storage is currently 42% full, providing a “good buffer” [Fakti.bg].
Traykov also pointed to the importance of Bulgaria’s long-term contract with Azerbaijan, ensuring a guaranteed gas supply at a favorable price, and the recent delivery of a liquefied gas tanker to Alexandroupolis, securing fuel for March and April. He expressed confidence that Bulgaria could manage for approximately three months without significant price changes by combining Azerbaijani gas and Chiren storage [Fakti.bg].
Addressing the “Botash” Contract and Electricity Bill Concerns
Traykov criticized the contract with “Botash,” established by a previous caretaker government, deeming it detrimental to Bulgaria, resulting in a daily loss of approximately one million leva. However, he expressed optimism following discussions with a Turkish Deputy Minister of Energy, suggesting a potential review of the agreement [Fakti.bg].
Traykov addressed reports of unusually high electricity bills from over 15,000 customers. He stated that an investigation is underway to determine the cause, with initial findings indicating that meter readings generally align with billed amounts. Approximately 130 electricity meters have been dismantled for independent technical and software testing, with results expected soon [Fakti.bg].