Bulgaria: Due to Expensive Fuels, small Gas Stations are going Bankrupt

Business » ENERGY | May 10, 2022, Tuesday // 09:49
Bulgaria: Bulgaria: Due to Expensive Fuels, small Gas Stations are going Bankrupt

Bankruptcy of small gas stations is starting due to expensive fuels. This was said by Rosinka Bachvarova, owner of a gas station in Burgas. She pointed out that the oil refinery stopped the discounts on wholesale prices a few months ago, and their selling price is higher than the delivery price.

"Currently, there is no crisis with fuel supplies. If their continuing rise in price can be called a crisis, then there is indeed a crisis.”

“Currently, small gas stations are on the brink of survival. This is due to high prices and very low margins. Margin is the difference between the purchase price, the included transport and the sale price. At the moment, the diesel at my gas station is 4 cents per liter. Imagine now how many liters I have to sell to be able to pay salaries, rents, wages, electricity, water and other expenses that run every month. In the last month alone, the price of a liter of fuel has jumped by 20 cents.”

“Big chains also operate at a minimum margin, and I'm sure they have a minimum profit or no profit at all.”

“The oil refinery removed the discounts for wholesale 4-5 months ago. The reason is company policy. Small gas stations have no alternative, if the rise continues, they will rely on imports of fuel from abroad. But there are obstacles in the regulatory framework. Gas stations themselves cannot import fuel. I do not think that the state will make any relief.”

“Excise duty and VAT are the main contributors to the treasury, so I believe that this cannot happen with the reduction of excise duties or taxes.”

“High fuel prices can only stop rising if the war in Ukraine is over," Rosinka Bachvarova said. According to her, the only worse scenario is an oil embargo on Russia.

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Tags: oil, fuel, bankruptcy, Bulgaria, gas
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