Bulgaria's Borissov calls for diesel export halt and 9% VAT on fuel

Bulgarian opposition leader Boyko Borissov called on Sunday for a halt to diesel exports, saying the country should keep the fuel at home, increase stocks in the state reserve and raise production. "Stop exporting the diesel, store it in the state reserve, produce more," the GERB leader said during a visit to the Danube town of Silistra, according to state news agency BTA. He warned that the diesel shortage could deepen in the coming months because of the international situation.

Borissov also proposed cutting VAT on fuel from 20% to 9% for the duration of the crisis, saying by his calculation it would lower diesel and gasoline prices by about 40 euro cents. He cited the reduced rate for restaurants during the COVID-19 pandemic as a precedent and said the European Commission would only need to be notified. He accused Prime Minister Rumen Radev's government of pushing the country into a debt spiral.

The Lukoil Neftochim refinery in Burgas told BTA that Bulgaria had no reason to fear a diesel shortage while the plant operates, producing 240,000 to 260,000 tonnes of diesel a month against domestic consumption of up to 190,000 tonnes. Borissov also criticized authorities' handling of a ship that sank in the Black Sea after a drone attack.