Bulgaria’s caretaker government said on March 27 it will roll out targeted measures worth about €100mn to cushion the economic impact of surging global oil prices, a government statement said.

The measures aim to preserve purchasing power of citizens and prevent disruptions to supply chains as higher global energy costs linked to the war in the Middle East feed into domestic prices. Since the start of the war in Iran, fuel prices in Bulgara have surged as much as 24%. 

Energy Minister Traycho Traykov said electricity support for businesses will be adjusted, with compensation set at 50% when prices on the free market exceed €122 per megawatt-hour. Payments will now be made monthly instead of every six months, according to a ministry statement.

A separate scheme for energy-intensive industries is also planned, offering support of up to 50% of electricity costs above €63 per megawatt-hour, pending approval from the European Commission. Traykov said Bulgaria could be the first EU country to introduce such a mechanism.

The package also includes a delay in planned toll fee increases for transport from April to June, alongside a proposal to double sector support to €50mn from €25mn, the government said.

Additional measures include a deferral scheme for leasing payments via the Bulgarian Export Insurance Agency, as well as the removal of excise duties on fuel for agricultural producers to support domestic food production.

Economy Minister Irina Shtonova said the government will introduce liquidity support for businesses, alongside credit support for small and medium-sized enterprises and measures to ease pressure on the transport and farming sectors, BTA reported.

Finance Minister Georgi Klisurski said the package is within the state budget’s capacity and is aimed at protecting vulnerable households while limiting inflationary risks. Some measures will be funded directly from the budget, while others will rely on reallocations within the energy sector.

The government said it is not considering cuts to value-added tax or price controls, citing potential fiscal risks. Instead, it said the focus is on containing inflation through targeted interventions.