Zhivodar Terziev: Fuel prices are likely to remain at these levels in the coming months

I hope that the prices of fuels (petrol, diesel) at the gas stations will remain at the current levels during the summer months, and why not after that, commented the chairman of the Bulgarian Oil and Gas Association (BOGA) during the morning block of BTV, Zhivodar Terziev. On May 27, he was re-elected chairman of the association.

In response to a question about the rise in fuel prices by the order of 17% from November 2020 to the beginning of June this year, Terziev outlined the influence of international factors.

"Oil is looking for its place in the global economy, after a difficult year for the whole world," he said, noting the significant decline in consumption during COVID-19 and the corresponding gradual recovery that began in early April-May this year.

The factors that will influence are different, Terziev added. Internationally, the meeting of OPEC and OPEC + is important, and on the other hand - the actions of the banks. Expected growth in consumption is expected in the coming months, but given that the price of Brent oil remained at 69-70 dollars per barrel, OPEC + continued its policy to restore production, said Terziev, emphasizing that prices in this situation will return to pre-crisis levels. For example, he pointed out that since June 1, for example, the prices of organic supplements in transport have risen by 70 percent per tonne.

"Personally, I hope that gasoline prices will continue to be at this level until the end of the summer season, and why not after that," said Terziev. He stressed that currently fuel prices in Bulgaria are "well set at the moment." At the same time, in response to a question about how much more a trip from Stara Zagora to Sofia costs, given the difference in prices from November until now, Terziev said that it is about 15 leva. "The income of the population should allow these costs, which are Western, and the salaries are Bulgarian," he made a comparison, adding that it still depends on the car, the road and the speed of movement. Comparing with the price levels in the neighboring countries, Terziev was categorical that in our country they are comparable and reminded that 50% of the value is due to taxes. Regarding the quality of fuels, the chairman of BPGA was also categorical - there are no problems.

The business model for the State Oil Company is not developing. I do not see any serious intentions to develop this idea, said Zhivodar Terziev. According to him, apart from the appointments of some directors and employees, nothing has happened so far.

Meanwhile, BOGA data show that during the coronavirus crisis and in particular due to the closure, Bulgarian companies in the sector reported a decline of up to 30%. Against this background, companies are committed to maintaining guaranteed fuel stocks and are also liable under the Energy Efficiency Act.