Parliament has given final approval to a zero excise duty rate on natural gas and liquefied petroleum gas (LPG) used as motor fuel for the period from October 1, 2026, to December 31, 2026. The amendments to the Excise Duties and Tax Warehouses Act were adopted at first and second reading in a single sitting. The bill was introduced by Stefan Belchev of Progressive Bulgaria and a group of MPs.
The measure is aimed at mitigating the adverse economic effects of high fuel prices and disruptions to the supply chains for oil, petroleum products and natural gas resulting from the geopolitical situation in the Middle East and the related uncertainty on international energy markets, the bill’s sponsors said. They said that rising prices were directly affecting household and business costs. The temporary zero rate is intended to reduce the tax component of the prices of the products concerned. As a result, the measure is expected to reduce budget revenues by some EUR 20 million over the three months in which it will apply.
Deputy Finance Minister Lyudmila Petkova said the EU directive on energy taxation allowed for reductions and zero rates on energy products. Bulgaria will notify the European Commission of the changes to its national legislation, she explained.
During the debate, MP Dimo Drenchev said Vazrazhdane would support the measure despite considering it limited, adding that it would provide some support to transport in large cities. His colleague Petar Petrov stressed that a three-month zero excise duty on LPG used by motor vehicles would have a limited effect. About 12% of vehicles in Bulgaria, or 394,000, run on LPG and would potentially benefit from the zero rate, while the remaining roughly 2.5 million would not, he said. Petrov also pointed to the lack of a mechanism to protect consumers in the event of a further increase in LPG prices, as well as the absence of a specific control mechanism.
Stefan Belchev, one of the bill’s sponsors, said it would not be possible to specify who would carry out the monitoring every time an excise duty was changed. Regarding LPG, he said that, according to data he had found online, 75% of the fuel used in Bulgaria was imported, meaning that its price in this case was largely determined by the importer’s pricing.
MP Martin Dimitrov of Democratic Bulgaria recalled that the European Commission had announced earlier in September that Bulgaria had recorded the largest increase in fuel prices. Although Democratic Bulgaria considered the measure limited in scope, it would support it, he said. Dimitrov said that the proposed reduction for natural gas amounted to EUR 0.02 per kilogramme and was largely symbolic, affecting around 65,000-70,000 vehicles. He described the compensation measures as piecemeal and called for an effective monitoring mechanism, with the National Revenue Agency (NRA) responsible for ensuring compliance with the legislation.
MP Temenuzhka Petkova said GERB-UDF would abstain from supporting the measure because it considered the measures poorly targeted and unlikely to produce the desired results. She added that the financial impact of the zero excise duty on LPG and natural gas would be negligible. Petkova cited Croatia as an example, saying the country had obtained a derogation allowing excise duty rates on petrol and diesel to be set below the minimum levels. Her colleague Aleksandar Ivanov argued that a more effective measure against high fuel prices would have been for Bulgaria, through the Bulgarian Energy Holding, to remain involved in exploration of the Khan Asparuh gas field in the Black Sea.
Parliament Approves Temporary Zero Excise Duty on Natural Gas, LPG for Motor Fuel 2026 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-09-25 15:12:55
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BULGARIA NEWS – NEWS AGENCY 2009–2026 2026-09-25 15:12:55