Fuel Price Speculation in Bulgaria Draws Criticism from Energy Expert

The recent surge in petrol prices in Bulgaria is being attributed to speculation by fuel processing and supply companies, according to Ivan Hinovski, chairman of the Bulgarian Energy and Mining Forum. Hinovski alleges that these companies are quietly inflating prices despite having access to raw materials at older, lower costs.

Claims of Untracked Price Hikes

Speaking on Radio FOCUS’s “Bulgaria, Europe and the World in Focus,” Hinovski stated that fuel companies have been slowly increasing prices since the start of the crisis, a practice he deems speculative. He criticized the lack of oversight from state institutions, specifically mentioning the Commission for Protection of Competition (CPC) and the Commission for Consumer Protection (CCP), claiming they lack the administrative capacity to effectively monitor and control pricing.

Calls for Regulatory Changes

Hinovski advocates for legislative changes that would grant the Commission for Energy and Water Regulation (KEVR) control functions over fuel prices. He argues that currently, no competent organization exists to analyze the price structure from the processing phase and monitor for speculation. “From the processing phase, i.e. What changes the prices, there is not a single competent organization to analyze the price structure and monitor whether there is speculation,” Hinovski explained.

Rejection of VAT Reduction Proposal

The energy expert dismissed a proposal from the Bulgarian Oil and Gas Association to reduce Value Added Tax (VAT) on fuels, labeling it a “palliative measure.” Although acknowledging a potential short-term effect, Hinovski warned that it would negatively impact the state budget, potentially leading to cuts in other areas. “This is a palliative measure. It will have an effect, but it will affect the budget. Deformations occur in the revenue part, loss of revenue for the budget. Then some of the budget expenses must be cut,” he stated.

Long-Term Concerns Over Refinery Closures

Hinovski also highlighted the concerning trend of large oil companies operating at a loss and shutting down refining facilities, predicting a long-term impact on fuel prices. However, he suggested that Europe is unlikely to face a fuel crisis within the next 90 days, despite potential supply disruptions. He cautioned that traders and oil refiners are likely to immediately raise prices, regardless of availability, raising the question of the basis for these increases.

Sofia District Heating Company Bankruptcy Risk

In a separate statement on February 3, 2026, Hinovski warned that the bankruptcy of the Sofia District Heating Company could lead to a city-wide energy crisis and potential fires, as the network is not equipped to handle a 2000-megawatt load. He emphasized the critical role of the company in energy security and advocated for its recapitalization, potentially through funds from the Housing Renovation Fund or the sale of assets from other thermal power plants. Факти

Toplofikatsiya Sofia’s Dire Situation

Hinovski stated on September 23, 2025, that “Toplofikatsiya” (Sofia District Heating Company) is so heavily decapitalized that it cannot be sold even for 1 lev. He attributed the company’s problems to short-sighted management and engineering illiteracy, noting that reforms have been needed for years to avoid a potential “apocalypse.” Fakti.bg