Bulgaria Announces Fuel Aid for Vulnerable Groups Amid Rising Prices

The Bulgarian government is preparing direct financial assistance to help vulnerable groups cope with increasing fuel costs, Prime Minister Andrey Gyurov announced on Thursday. Even as details are still being finalized, the aid will be deposited directly into eligible citizens’ accounts.

Rising Fuel Costs Prompt Government Action

The announcement follows another increase in fuel prices, with diesel reaching 1.50 euros per liter at major gas station chains, and gasoline slightly cheaper. The government estimates it can allocate approximately 30 million euros from the budget for this assistance.

Eligibility Criteria and Implementation

The aid will be targeted towards vulnerable groups, with an income ceiling likely to be established to determine eligibility. Pensioners are expected to be among the recipients. The assistance may be implemented as early as this month, pending a final evaluation of oil price dynamics. The National Revenue Agency (NRA) will be utilized to verify income information, and is already monitoring fuel prices to prevent speculation, according to Finance Minister Georgi Klisurski.

Support for Businesses Also Planned

In addition to aid for citizens, the government is negotiating with the European Commission to postpone the introduction of a carbon dioxide component to toll taxes, potentially until July. This measure is intended to support transport and logistics companies and prevent price increases for other goods. Discussions are also underway with businesses regarding potential measures, including a possible reduction in the electricity price ceiling for compensation purposes.

Government Response to Political Criticism

Gyurov acknowledged the formation of a working group on Tuesday to monitor fuel prices daily and responded to criticism from opposition parties. He urged them to focus on legislative measures needed to avoid losing 437 million euros in EU funding under the Recovery and Resilience Plan (PVU).

Political Proposals and European Examples

Several political parties have offered proposals, including the creation of a fund at the Ministry of Finance, financed by increased VAT revenues from higher fuel prices, to compensate businesses, public transport, and other sectors. Other suggestions included using VAT revenue to compensate vulnerable consumers and implementing a price ceiling.

Several European countries have already taken action to address rising fuel prices. Hungary has banned exports, released fuel from state reserves, and imposed a price ceiling. Croatia has also implemented a price ceiling. Germany is limiting price changes at gas stations to once a day, while Greece is restricting profit margins on fuel and groceries. Italy is considering using increased VAT revenue for compensation, and Austria will redistribute windfall tax revenue from higher fuel prices to consumers.

Additional Measures in Other European Nations

Other measures being considered or implemented across Europe include extending strategic gas reserves, extending caps on household electricity prices, and easing requirements under the EU’s emissions trading system. European Commission President Ursula von der Leyen has indicated that capping natural gas prices is under consideration. Von der Leyen stated that the 10 days of conflict in Iran have cost European taxpayers an additional 3 billion euros in fuel, highlighting the cost of European dependence.