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Gasoline will reach Little Over BGN 3 Predicts Head of the Balkan Black Sea Oil Association

Oil supplies to Bulgaria are stable and rhythmic, said on BNT the chairman of the Balkan Black Sea Oil and Gas Association Valentin Kanev. According to him, at this stage, there is no reason for a drastic increase in the price of gasoline.

However, oil prices are projected to rise. Kanev commented on the paradox that there is Russian oil, it is cheaper, there is a possibility of delivery, but no one wants to buy it.

“Refineries and traders do not want to buy it because, on the one hand, banks do not give them credit lines and, on the other hand, they think they may have some problems afterwards with sanctions, although oil supplies are not part of the sanctions. Another reason is that the Black Sea is already a risky area for transporting goods, including oil, and traders would not want to risk delivering from there. On the other hand, the tariffs for transportation have increased five times, and the insurance companies have increased the premiums for the insurance of the tankers many times, so it is not profitable to buy in this way,” said Kanev.

He explained that Bulgaria receives from the cheaper Russian oil. However, if Russian oil stops coming to Bulgaria, the refinery in Burgas has the opportunity to work with other varieties. It has already done it in the past. Oil can come from Algeria, Libya, Iraq, Saudi Arabia through the Mediterranean market.

“One of the forecasts for the increase in the price of oil is that it will reach a level where consumption will start to fall. If the price of oil reaches $120-130 per barrel, this will cause a drop in consumption. Then supplies will begin to be sufficient and the price will fall. I would predict that the petrol will reach BGN 3 and a little more, but not more than that,” said Valentin Kanev.

Bulgarian PM on Fuel Shortages: There is No Reason for Panic at the Moment!

According to him, the best option is to keep current prices. Regarding the queues at gas stations days ago, which were caused by rumors of a jump in prices, Kanev expressed the opinion that this has shown the ability of social networks to influence people’s behavior.

“It’s hard to say who exactly did it, but someone just put these pictures on the internet and things went that way. I think the big panic came from what was shown on Facebook, because it’s as far as we understand, for individual cases of about 20 gas stations”, said Kanev.

Asked about the signs with high prices at gas stations, Kanev commented that these were certainly not large chains with stable supplies, but rather small players who wanted to make quick profits.


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