Financial and business news from Bulgaria

Super news: Fuel prices fell

Fuel prices fell 10 pennies bluntly their level last week. In days, however, there could also be a new decrease as oil prices continue to go downward.
On Thursday, the average price of gasoline in the country was 2.12 BGN per liter, vs. 2.22 BGN last week. Diesel sold for an average of 2.16 BGN, up from 2.27 BGN per liter days ago. The difference in prices at gas stations is huge. In places the petrol can be bought at 1.88 BGN per liter, while others sell it at 2.23 BGN. For diesel, the price differences are even greater — between BGN 1.87 and BGN 2.28 per liter.

On Thursday, the cents of oil on international markets continued to fall. Two factors that influence supply and demand have contributed to this.

On the one hand, US President Donald Trump has banned the travel of citizens of the Schengen area from Europe to the US. On the other hand, Moscow announced that there is no point in restricting production.

“A collapse in the price of oil has become inevitable, and a reduction in production has ceased to make sense, as it is unclear how strong the impact of the coronavirus will be on demand,” Russia's Deputy Energy Minister Pavel Sorokin told Reuters.

“We cannot combat a situation of declining demand when there is no clarity where the bottom (of demand) is,” Sorokin said.

Last week, Saudi Arabia failed to get Moscow's support for larger oil production cuts. Riyadh therefore threatened to flood the market with oil and oil prices on Monday fell by over 30%.

On Thursday, oil hit lower levels than Monday's market close. The Brent variety was trading below $33 per barrel, down 50 per cent from a year earlier.

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