Bulgaria Nears Completion of Leva Withdrawal as 81% Taken Out of Circulation
As of February 6, 2026, Bulgaria continues to make steady progress in withdrawing the national currency, the leva, from circulation.
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As summer travel peaks in Bulgaria at the start of August, many drivers have encountered unexpected difficulties at the pump. Some gas stations, especially smaller ones, are either running out of gasoline or closing temporarily due to a shortage of bioethanol, a mandatory fuel additive without which gasoline cannot be legally sold.
The issue traces back to a recent EU regulation requiring all fuels to contain at least 10% bioethanol, a standard in place since March to meet environmental goals. In Bulgaria, the bioethanol used in fuel blends is supplied by the company "Lukoil Heftohim." However, recent reports indicate that some fuel distributors have not received their expected deliveries, impacting smaller gas stations that lack large storage reserves the most. Some have even been forced to close, while others face selling restrictions.
Several factors contribute to this shortage. First, the corn harvest in Eastern Europe, the primary raw material for bioethanol production, has been weak this year. Additionally, one of Hungary’s main bioethanol plants has ceased operations. In Bulgaria, only one out of two producers in the sector remains active. Complicating the supply further, Ukraine, a key regional supplier, imposed export quotas in June, and one local Ukrainian producer is under European Commission investigation for irregularities.
Despite these challenges, the Bulgarian refinery insists it has secured enough bioethanol to meet demand, and production is stable. It expects deliveries to return to normal soon. Importantly, the current supply issues have not caused any fuel price hikes, according to the Fuelo platform.
Meanwhile, affected fuel retailers are appealing to the government for temporary relief, requesting permission to sell gasoline without the bioethanol additive. Sustainable development expert Boyan Rashev pointed out on social media that the real problem lies not in consumer demand but in stringent regulations. The sustainability mandates and obligatory biocomponents are effectively halting some production and imports, leading to a bioethanol shortage and stagnation in E10 fuel production. This leaves consumers who only want standard gasoline without additives unable to refuel.
This situation highlights the unintended consequences of strict climate and energy policies, which can create a “regulatory blockade” when real-world conditions are ignored. Rashev criticized the overregulation typical of European bureaucracy as the root cause, suggesting that only by removing excessive regulatory barriers can such supply disruptions be avoided in the future.
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