Bulgarians Rally Yet Again against Spike in Fuel Prices

Society | April 28, 2011, Thursday // 08:11| Views: | Comments: 0
Bulgaria: Bulgarians Rally Yet Again against Spike in Fuel Prices A file photo from previous protests against fuel prices in Bulgaria. Sofia Photo Agency

Rallies are starting early Thursday afternoon across the whole of Bulgaria against what some see as the artificially inflated prices of fuels.

The protesters demand that the most widely used fuel A 95 sells at no more than 2 levs per liter and fuel prices are formed in a transparent way.

The fresh consumer protests will take place this time together with the union of transport companies.

In Sofia, drivers will move at a very slow speed along key traffic arteries and gather around the St. Alexander Nevsky cathedral in downtown Sofia, where they plan to demonstratively leave their cars parked, blocking the traffic.

Protests are previewed in dozens more major cities and towns across the country, with the blocking of some inter-city roads planned.

Consumer organizations have cried out against what they see as unreasonably high prices of fuels, based on what they claim to be unfair market behavior, especially by the dominant Lukoil company.

Earlier protests took place March 14 and 27, and April 3 and 16, blocking access to some gas stations and roads.

At the end of March Bulgaria's center-right government convinced Lukoil Bulgaria to place a one-month moratorium on the increase of its gas and diesel prices as part of efforts to tame the spike in petrol costs, linked to the increase in global crude oil prices.

The agreement was reached after car marches across the country protested against recent fuel price hikes.

The moratorium expired on April 23, Saturday.

Russia's Lukoil, owner of Bulgaria's only oil refinery, may agree to extend the one-month freeze on retail fuel prices, which expired during the Easter holidays, according to insiders.

Sources from Lukoil Bulgaria, who spoke to Dnevnik daily on condition of anonymity, neither confirmed nor denied rumors that the moratorium may be extended.

Transport Minister Alexander Tsvetkov was the first to hint a new freeze is likely as early as last week. He said he did not expect retail fuel prices to surge after the agreement between the government and Lukoil expires, but should this happen, the two sides will most probably agree on what he called a "grace period".

The parameters of the new agreement were not immediately clear.

Diesel has been selling at 2.47 levs per liter since April 23, while the most widely used fuel A 95 – at 2.37 per liter.

Reports of a possible new agreement between Lukoil and the government have angered even more the other fuel companies, who said this would be very bad news.

The moratorium is in force for only 29% of the retail fuel market, which is the share held by Lukoil Bulgaria gas stations.

The moratorium has fueled suspicions of very close ties between Bulgaria's Prime Minister Boyko Borisov and the head of Lukoil Bulgaria Valentin Zlatev, whom the opposition has described as "the country's back seat ruler" and "the oil oligarch, who pulls the strings of the government".

The cabinet has also reduced temporarily the obligatory fuel reserves distributors are obliged to keep in a bid to drive down the end consumer price.

Thus, by the end of April 2012, Bulgaria will no longer have fuel on stock for 60 days, as it is at present, but for 50 days. By the end of April 2011, the minimum required amount will be fuel on stock for 40 days. After that, between April 2012 and April 2013, the fuel stock will be increased again to be enough for a period of 60 days.

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Tags: rally, protest, Lukoil, fuel, fuel prices, Traicho Traikov, Boyko Borisov, moratorium, Russia, diesel, Lukoil, Bulgaria, Valentin Zlatev, Boyko Borisov, Prime Minister, Traicho Traikov, Economy Minister, Simeon Djankov, finance minister, fuel, fuel prices, fuel reserve, fuels, transport companies, protests, gas, Transport Minister Alexander Tsvetkov
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