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EC Puts on Hold Methane Price Hike in Bulgaria
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The price hike for methane, used as fuel for vehicles, which was to become effective in Bulgaria on the first day of 2014, has been put on hold.
The information was announced by Deputy Finance Minister Lyudmila Petkova.
Bulgaria has received permission from the European Commission to tax methane, used as motor fuel, at a reduced excise rate until 2020, bTV reported.
The increase in the excise duty on methane was necessary as Bulgaria is required to reach the minimum level of the excise levy in European Union, but the country requested a postponment.
The European Commission has estimated that Bulgaria's request did not constitute illegal State aid and will not distort competition on the local market and in other countries.
If Brussels had not approved Bulgaria's request, the excise duty on methane fuel had to be increased in 2014 by 500%, thus the cost of a kilogram of fuel would have risen by BGN 0.25 to BGN 0.30.
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