The Bulgarian Commission for Protection of Competition (CPC) has presented a wide-ranging package of 23 emergency and long-term measures designed to stabilize the country’s fuel market amid rising geopolitical tensions and increasing volatility in global oil prices.
The proposals follow an extensive investigation launched in March, triggered by the worsening conflict in the Middle East and its potential impact on fuel supply security and pricing dynamics. According to the regulator, the recommendations are based on detailed market analysis and ongoing as well as completed proceedings involving the Lukoil group.
The CPC stated that its report covered all major segments of Bulgaria’s fuel value chain, including refining, imports, storage, wholesale distribution, and retail sales. Authorities also reviewed the effectiveness of crisis measures introduced by the caretaker government during the period of heightened market stress.
One of the key findings was that government intervention helped slow fuel price increases, but was not sufficient to fully halt the upward trend. The Commission also identified market distortions linked to the appointment of a special administrator overseeing Lukoil operations in Bulgaria.
According to the report, discrepancies emerged between wholesale and retail fuel pricing at Lukoil-operated stations, which placed additional pressure on smaller fuel traders, importers, and producers. The CPC noted that after its intervention earlier in the year, the disputed pricing practices were discontinued.
A central recommendation is the creation of a permanent fuel market task force under the Council of Ministers. This body would include state institutions and industry representatives and would be responsible for monitoring fuel availability, price movements, storage levels, and supply risks.
The regulator also proposed the introduction of a weekly official fuel index, which would publish international benchmarks, domestic pricing data, trading margins, and reserve levels to improve market transparency and reduce uncertainty.
Additional measures include stricter oversight across the entire fuel supply chain, from refinery operations to retail distribution. The CPC also recommended developing contingency plans for refinery continuity and accelerating efforts to diversify crude oil supply sources.
Several proposals target sectors heavily dependent on fuel costs, including transport, agriculture, fisheries, and fertilizer production. The Commission suggested introducing compensation mechanisms to offset increased operational costs for these industries during periods of high fuel prices.
The package also includes short-term stabilization tools such as liquidity support mechanisms, supply guarantees for strategic fuel reserves, and potential postponement of toll increases during periods of extreme price pressure. A separate proposal calls for the creation of a temporary fuel stabilization fund, financed through additional VAT revenues generated by higher fuel prices.
The CPC further recommended temporary anti-speculation measures, adjustments to biofuel blending obligations, and flexible excise policies during prolonged market stress. It also proposed compensation systems for producers and importers, ensuring full supply chain traceability.
Long-term structural reforms include improving access to tax warehouses, expanding fuel storage infrastructure, encouraging new market entrants, and reducing fossil fuel dependency through transport electrification and energy efficiency measures.
At the same time, the CPC confirmed that investigations into the Lukoil group for suspected abuse of a dominant market position are still ongoing. Earlier this year, the regulator requested detailed operational and commercial data from Lukoil Neftochim Burgas, Lukoil Bulgaria, and other major wholesalers operating in the Bulgarian fuel market.
