Bulgaria approves zero excise tax on natural gas and LPG

The Bulgarian Parliament has approved amendments to the Excise Duties and Tax Warehouses Act, introducing a zero excise tax on natural gas and liquefied petroleum gas (LPG) intended for motor fuel. The measure is set to take effect from October 1 until December 31, 2026.

Introduced by Stefan Belchev and members of the Progressive Bulgaria parliamentary group, the legislation aims to mitigate economic impacts caused by rising energy prices and supply chain disruptions linked to geopolitical instability in the Middle East. The temporary nature of the tax relief is intended to prevent long-term reliance on fossil fuels in alignment with climate goals.

Deputy Finance Minister Lyudmila Petkova noted that the measure will have a total budgetary impact of approximately 20 million euros. Of this, 17 million euros is attributed to LPG, which is primarily used in urban transport and by lower-income households. Following the law's adoption, the Ministry of Finance will notify the European Commission regarding the implementation of these zero rates.