Svetoslav Benchev: Fuel prices rise as a result of higher oil and other energy prices

Fuel prices (petrol, diesel, etc.) are rising due to the price of oil. A month ago, the price of oil was about $ 80 a barrel. Yesterday reached record levels for the last 8 years - up to 86 dollars per barrel. The price this morning was slightly lower - about $ 85 per barrel and is the main reason for rising fuel prices. This was commented to BTV by the chief lawyer of the Bulgarian Oil and Gas Association (BOGA) Svetoslav Benchev.

He recalled that one of the reasons for the increase in oil prices was in the first place the decision of OPEC + to keep oil production quotas (400 thousand barrels per day) at the level of August.

"In practice, this means that demand continues to exceed supply. Not enough to create a deficit, but enough to keep prices up, "he said. According to him, if the situation persists, if the OPEC meeting in November does not decide to increase production, prices may go up, "because then there will really be a deficit."

As an example of how far prices can go, Benchev pointed to a value in the range of 90-95 dollars per barrel.

In response to a question about how far the prices of gas stations in our country can go, the chief lawyer of BOGA pointed out that at the current values ​​of 85-86 dollars per barrel, the prices of basic fuels will reach BGN 2.50 (per liter), but this remains to see if it will happen in the coming weeks, he said.

"If they exceed $ 90 per barrel and reach $ 95 or more, they can go up to BGN 2.50. Usually the lag between what happens on the oil market and gas stations is 14 days, depending on how much the warehouse keepers have in stock. ", Specified Benchev.

The other reason for the current and rising values ​​of fuels is the prices of other energy resources. In this regard, the expert recalled that petroleum products are substitutes for natural gas and this leads to a rise in oil prices. Last but not least, he pointed to the situation with high coal prices in China.

"The price of our gas stations has risen by about 11% within a month - month and a half, at the same time the price of the raw material (oil) has risen by about 25%. This increase is quite normal with the approach of winter, "said Benchev and added that fuel prices are record not only in Bulgaria but throughout Europe, but still here are the cheapest. For example, he pointed out that the difference with neighboring Romania is 10 eurocents. "In Greece, diesel is 3 leva and gasoline is over 3.20," he said. For comparison in Bulgaria (according to fuelo.bg) the price of gasoline A 95 is BGN 2.38 per liter, and diesel - BGN 2.39 per liter.

"We have the lowest fuel prices with and without fees in the European Union," said Benchev. As an example of what measures are being taken in some EU countries, he pointed to France, where the excise tax is likely to be reduced by the state.

The expert expects that by the new year there will be no sharp jump in fuels. At the same time, he confirmed his forecast for the price of gasoline of the order of BGN 4 per liter in 2023 due to the "Ready for 55" package, where a drastic increase in excise duties is expected. For example, in the case of natural gas - 80 stotinki and especially in propane-butane, where the increase in excise duty alone will be 60 stotinki. "It's a really horrible increase that will happen. In this regard, the chief lawyer of BOGA called on the state to start active negotiations with the relevant European institutions, as there is a possibility for renegotiation.