Bulgaria competition watchdog urges emergency fuel-market controls as oil prices swing

Bulgaria’s competition watchdog has put forward a package of 23 emergency and long-term measures aimed at stabilizing the country’s fuel market as geopolitical tensions rise and global oil prices become more volatile. The proposals come after an investigation launched in March, with the regulator citing concerns that developments in the Middle East could affect fuel supply security and pricing dynamics.

Investigation scope and what the CPC found

The Bulgarian Commission for Protection of Competition (CPC) said its recommendations are grounded in detailed market analysis and in ongoing as well as completed proceedings involving the Lukoil group. The report covered major segments of Bulgaria’s fuel value chain, including refining, imports, storage, wholesale distribution, and retail sales. It also assessed the effectiveness of crisis measures introduced by the caretaker government during a period of heightened market stress.

While the CPC found that government intervention helped slow fuel price increases, it concluded that it was not sufficient to fully stop the upward trend. The regulator also pointed to market distortions tied to the appointment of a special administrator overseeing Lukoil operations in Bulgaria.

According to the CPC, discrepancies developed between wholesale and retail pricing at Lukoil-operated stations. The regulator said these practices increased pressure on smaller fuel traders, importers, and producers. It added that after its earlier intervention earlier in the year, the disputed pricing practices were discontinued.

Monitoring tools and supply-chain oversight

A central recommendation is establishing a permanent fuel market task force under the Council of Ministers. The body would bring together state institutions and industry representatives to monitor fuel availability, price movements, storage levels, and supply risks.

The CPC also proposed introducing a weekly official fuel index designed to improve transparency. It would publish international benchmarks alongside domestic pricing data, trading margins, and reserve levels to reduce uncertainty for market participants.

Beyond monitoring, additional measures call for stricter oversight across the entire supply chain—from refinery operations through retail distribution. The CPC recommended contingency planning for refinery continuity and accelerating efforts to diversify crude oil supply sources.

Support for cost-sensitive sectors and short-term stabilization

The package includes targeted proposals for sectors that are heavily dependent on fuel costs: transport, agriculture, fisheries, and fertilizer production. The CPC suggested compensation mechanisms intended to offset increased operational costs during periods when fuel prices remain high.

For near-term stabilization, it outlined liquidity support mechanisms, supply guarantees for strategic fuel reserves, and potential postponement of toll increases during extreme price pressure. A separate proposal would create a temporary fuel stabilization fund financed through additional VAT revenues generated by higher fuel prices.

Policy adjustments during prolonged stress

The CPC further recommended temporary anti-speculation measures, adjustments to biofuel blending obligations, and flexible excise policies if market stress persists. It also proposed compensation systems for producers and importers while ensuring full traceability across the supply chain.

Structural reforms alongside ongoing enforcement

On longer-term competitiveness and resilience, the regulator pointed to structural reforms including 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 Lukoil for suspected abuse of a dominant market position are still ongoing. Earlier this year, it requested detailed operational and commercial data from Lukoil Neftochim Burgas, Lukoil Bulgaria, and other major wholesalers active in Bulgaria’s fuel market.