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The Myth of Derogation and Lower Fuel Prices in Bulgaria: Insights from Chief Economist Lachezar Bogdanov

It is a myth that the derogation leads to lower fuel prices in Bulgaria. This is what the Chief Economist of IPI Lachezar Bogdanov told bTV.

“It remains unclear exactly how the refinery’s profit will be taxed – there are some rules.” There was a tax introduced that was supposed to tax the difference between the price of Russian oil and the prices of oil from other sources. But nothing happened,” he explained. He also reminded that there is a tax on excess profits in our country, but so far it is not happening either.

“Regarding the speculation about the prices on the Bulgarian market and what is happening to the consumers – for a very long time it was imagined that the derogation was in favor of the Bulgarians. After the start of the war in Ukraine, a pair of scissors is opening, which is definitely not in favor of consumers in our country,” he said and showed the relevant graphs.

Lachezar Bogdanov is adamant that if you compare Bulgaria with neighboring countries, you can see that the situation is more or less the same, regardless of the fact that the raw material is more expensive there. According to him, the one who processes and sells on our market (“Lukoil Neftohim” – Burgas) earns more. The reason is the existence of the derogation, the expert further specified.

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2023-10-23 20:08:10


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