site.btaTransport Minister Favours Ban on Diesel Export from Bulgaria

Transport Minister Hristo Aleksiev is in favour of banning the export of diesel made in Bulgaria. "In my capacity as caretaker Deputy Prime Minister in charge of economic policies, I believe it is reasonable to ban the export of diesel fuel in order to protect the interests of Bulgarian citizens, first and foremost," Aleksiev said during Question Time in Parliament Friday.

He said that Serbia has taken this step and that the issue is part of the government's communication with the European Commission (EC).

Aleksiev commented fuel export in answer to a question by MP Ivaylo Mirchev (Democratic Bulgaria) about the progress of talks between the government and the EC on whether or not Bulgaria should be exporting fuel made from Russian crude.

The issue has been on the agenda since November when it transpired that the caretaker government plans to lift a ban on the export of fuel and other products made by the Lukoil Burgas refinery from Russian crude. Some argue that it would violate the EU regulations banning trade with Russian oil but the government insists that the derogation allows Bulgaria to export.

"The sanctions regulation does not have an explicit ban on the export of petroleum products originating from Russian crude oil," Aleksiev said reiterating the Bulgarian government's position on the matter. He recalled, though, that the derogation for crude oil was granted to Bulgaria so that it could satisfy the needs of its citizens.

Bulgaria's annual fuel consumption is 3 million tonnes, of which 2.5 million tonnes is diesel, said the Minister.

"Apart from this amount of diesel required for domestic consumption, Lukoil Burgas also produces other derivatives or by-products, some of which have no market in Bulgaria. If they are not exported, the refinery's warehouses will fill up in 14 days and it will have to stop work, in which case Bulgaria will have to import fuel and prices will go up," Aleksiev said.