HomeOilBulgaria unveils fuel-cost relief package worth over €300 million

Bulgaria unveils fuel-cost relief package worth over €300 million

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Bulgaria has introduced more than €300 million in support measures aimed at limiting the impact of expensive fuel on inflation. The package includes targeted aid for agriculture, transport operators and lower-income households.

Aid for farmers and support linked to gas oil costs

Agriculture is set to receive one of the largest allocations within the state aid plan. Of approximately €170 million in planned state aid, €100 million will compensate farmers for the increase in gas oil prices between 2025 and 2026. The payment is expected to provide support of close to €0.44 per litre used by eligible agricultural producers.

The measure is designed to limit farm fuel costs and reduce the risk that higher energy expenses feed into food prices. Eligibility is tied to agricultural producers using the specified fuel input.

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Excise duty suspension for propane-butane through 2026

Bulgaria also plans to suspend excise duty on propane-butane through the end of 2026, subject to legislative approval. The measure is expected to reduce government revenue by about €15 million. It would also lower costs for motorists and transport operators using liquefied petroleum gas.

No equivalent excise reduction is currently planned for petrol or diesel. Additional intervention remains possible if market conditions deteriorate.

Targeted transport assistance and one-off poverty payments

Public, school and medical transport operators will receive targeted assistance under the package. Support is focused particularly on smaller and remote communities where rising fuel costs could otherwise lead to reduced services or higher fares.

More than 550,000 people below the poverty threshold are expected to receive a one-off payment of €50. Around €30 million has been allocated for the measure, with payments to be made automatically.

Much of the programme is already covered by the 2026 budget, enabling Bulgaria to deploy relief quickly. Further intervention would increase the fiscal cost of insulating households and businesses from energy markets.

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