Deputy Prime Minister Alexander Poulev: We Prevented a Fuel Market Collapse and Shortages

"To protect the national interest and the interests of Bulgarian citizens, under the auspices and strong leadership of Prime Minister Rumen Radev, we achieved two major victories. First, we prevented a collapse and shortages in the country's fuel market. Second, we prevented a sharp surge in prices for consumers." This was stated by Deputy Prime Minister and Minister of Economy, Investments and Industry Alexander Poulev at a joint briefing with Evgeni Simeonov, Special Commercial Manager of LUKOIL, following the extension of the licence allowing LUKOIL to continue its operations in Bulgaria.

"This is not merely an administrative procedure. It is a concrete measure to ensure the continued operation of the refinery, the stability of supplies and the protection of Bulgarian consumers," Poulev emphasised.

"This is the result of consistent action by the Government against the backdrop of serious inherited problems, geopolitical pressure and high volatility in fuel prices," Poulev stressed. According to him, thanks to the excellent dialogue and expertise of the Special Commercial Manager, the Government and Bulgaria's international partners, the United Kingdom extended the derogation licence allowing LUKOIL Group companies in Bulgaria to continue their business operations until 29 October 2026.

Poulev explained that the extension of the UK licence until the end of October is linked to the start of negotiations with the US partners on renewing the US licence. "The idea is to ensure that, from now on, there are no discrepancies and that we do not have to enter into separate, parallel negotiation processes," he said. Poulev noted that the aim is to align the expiry dates of the derogations and licences involving Bulgaria, the United Kingdom and the United States.

According to him, following extremely aggressive and ill-considered actions by the Borissov Government in 2025, amendments were made to the so-called LUKOIL Act, which were subsequently declared unconstitutional by the Constitutional Court, with the ruling taking effect on 4 August. "We could literally have woken up on 5 August with a refinery that did not comply with the applicable sanctions requirements and regimes. This would have meant a real risk of the refinery ceasing operations, a breakdown in supplies and serious disruption to the fuel market," he recalled, stressing that the Bulgarian Government had prevented this scenario. "Working in close coordination, the Council of Ministers and the Members of Parliament from Progressive Bulgaria took the necessary legislative and administrative measures to ensure the uninterrupted operation of the refinery and security of supply," he added.

Deputy Prime Minister Poulev noted that without the extension of the licence, the refinery would have faced a range of financial and operational difficulties that would have led to higher fuel prices and a sharp price surge. "And when fuel prices rise, the cost of transport, logistics and production increases, ultimately making goods and services more expensive for Bulgarian citizens and businesses," he added, stressing that for the Government this had never been an issue concerning just one refinery. "This is a matter of national security, energy security, economic stability and consumer protection," Poulev stated. According to him, recent weeks have seen attempts to turn the national interest into a political instrument. "Manipulative claims and irresponsible rhetoric could have jeopardised the security of fuel supplies throughout the country," he said.

"We chose a different approach - hard work, dialogue and concrete results. The refinery will continue to operate. We are ensuring continuity of supply. We are limiting the risk of shortages and market disruption. We are protecting Bulgarian consumers from sharp price increases. We are providing businesses with the predictability they need," Deputy Prime Minister Poulev stated.

He thanked Bulgaria's international partners for the successful cooperation. "They have seen that they can rely on the Bulgarian Government for cooperation and support not only in words, but through concrete action. As a result, the refinery will continue to operate optimally, filling stations will continue to operate, and fuel will remain available at affordable prices that are among the most competitive in the European Union," Deputy Prime Minister Poulev emphasised.

According to LUKOIL's Special Commercial Manager, crude oil supplies have been secured until the end of September, while supplies through the end of October are currently being negotiated. "There is oil and there will continue to be oil; there is fuel and there will continue to be fuel. All crude oil is purchased from major global suppliers. I would like to dispel any doubts and speculation on this point - we do not purchase and will not purchase oil from sanctioned companies," he said.

According to him, refinery throughput has increased significantly over the past two months. "Lukoil Bulgaria is having its best month in Bulgaria in the last five to six years. Performance against the plan is above 30%," he added, noting that fuel prices in Bulgaria are affected by all international factors that influence prices across Europe. "Due to the geopolitical situation, many refineries in the Middle East and the Persian Gulf are not operating. This is causing severe shortages of liquid fuels in Europe and around the world," Evgeni Simeonov stated. He noted that LUKOIL operates with a minimal mark-up. "We are managing to maintain affordable fuel prices in Bulgaria, which we expect to decline in the coming months. There will be no sharp surge in prices," Simeonov assured.