Bulgaria to remove propane-butane excise tax to lower fuel prices

The Bulgarian government has announced a series of measures to combat high fuel prices, including the removal of the excise tax on propane-butane. This move is intended to lower costs at the pump for households using gas systems and for businesses, particularly transport companies.

Minister of Innovation and Growth Alexander Pulev stated that the new package of measures is designed to provide targeted support to the most vulnerable segments of the population. Over 550,000 low-income citizens are expected to benefit from subsidies directed at essential sectors, including public transport, school buses, and medical transport services.

Additionally, Minister of Agriculture and Food Plamen Abrovski highlighted that 170 million euros have been allocated for agricultural support. This includes 100 million euros to compensate farmers for the difference in diesel prices between 2025 and the current year, providing approximately 44 cents per liter in assistance.

Stefan Belchev, a deputy from Progressive Bulgaria, noted that while the removal of the propane-butane excise is a step forward, the party remains skeptical about removing VAT on all fuels due to potential economic ripple effects. He also mentioned a new digital platform using artificial intelligence to track the food supply chain to prevent market distortions and illegal imports.