Bulgargaz has demanded that the price for public supply of natural gas in the third quarter of 2008 be 19.60 per cent higher than the current price. The distributor has submitted a proposal to this effect to the State Commission for Energy and Water Regulation.

The proposed price is 494.67 leva/1,000 cubic meters, exclusive of VAT.

Despite the unfavorable international conditions, the price proposed by Bulgargaz remains one of the lowest in the EU and lower than the prices in neighboring countries.

Speaking in Bourgas, political analyst Ivan Krustev said it is very important for Bulgaria to have an energy strategy envisaging different options of fuel prices. The Government is currently working with one optimistic option, envisaging that the price of crude oil will be below 100 US dollars per barrel, Krustev said at a seminar on the processing and pricing of oil products, organized by the Lukoil refinery.

According to Krustev, the price of oil will increase in the next year and a half. He cited the complicated situation in the Middle East and the forecast that there will not be a sharp appreciation of the US dollar or a significant increase of oil extraction, only growing demand.

Transport Minister Peter Moutafchiev reiterated Monday that the excise duty for fuels will remain unchanged until the end of 2009 and the government is committed to this without going counter the EU requirements. Commenting the renewed protests of fuel motorists and fuel producers, he said that a working group with the government will be meeting June 17 organizations which are directly or indirectly affected by the situation on the fuel market and will propose to the government an action plan.