The Commission for Protection of Competition (CPC) has held a working meeting with representatives of the Association of Bulgarian Traders, Producers, Importers and Transporters of Fuels to discuss recent price developments and competitive dynamics in the country’s fuel market.
According to the CPC, the industry association presented information on market trends and price movements, including data showing a sharp rise in wholesale fuel prices over a short period. The increases, affecting both gasoline and diesel, have reportedly outpaced changes in retail prices.
Retail margins under pressure
Industry representatives told the authority that in some cases fuel retailers are operating with very small or even negative margins, as they face rising costs for transport, fuel additives, energy, labour and maintenance.
The association also stressed that the current price movements are largely driven by external economic factors and developments in international markets, and are not linked to Bulgaria’s ongoing preparations for adopting the euro.
Concerns about below-cost sales
During the meeting, participants also discussed whether market practices involving fuel sales below full cost could distort competition. According to the CPC, such practices could potentially harm smaller market participants and trigger a destabilising “price spiral”.
Information to feed ongoing investigation
The competition authority said that the information provided during the meeting will be analysed and incorporated into its ongoing investigation into the fuel sector.
The proceedings, launched in 2025, focus on potential competition law violations involving the Lukoil Group in Bulgaria. The investigation is examining possible abuses of dominance and practices that could restrict competition within the fuel supply chain.
The CPC said the review aims to assess whether market conduct in the sector may be affecting the competitive environment for fuel distribution and retail in Bulgaria.
Source: https://www.cpc.bg/news-495
