Prolonged Iran conflict likely to affect fuel prices, expert says

Fuel prices could rise further depending on how long the conflict involving Iran continues, according to Svetoslav Benchev, chairman of the Bulgarian Petroleum and Gas Association.

In an interview with Bulgarian National Radio, Mr Benchev revealed that petrol and diesel prices had already increased slightly by around 1%, following a 7–8% rise in global crude oil prices over the past month.

'What happens next will depend entirely on how events around Iran develop,' he said, adding that the situation regarding natural gas is also concerning as it would be difficult to replace supplies from the conflict region.

The expert warned that if the conflict lasts for around four weeks, it could have a more significant impact on crude oil prices. According to Mr Benchev, the promised production increase of 200,000 barrels per day by OPEC would not be sufficient should the crisis deepen.

He added that there are currently no supply problems affecting the Lukoil refinery in Bulgaria and that the country maintains adequate reserves. He said that oil prices would need to remain elevated for around 10 to 14 days before the increase would be reflected at petrol stations.

Editor: Ivo Ivanov