Brussels officially declines our request for lower excise duty on fuels

Renegotiation of the necessary steps for reaching the minimum rates of excise duty on fuels is not possible for both Bulgaria and the other EU member states. This was clearly confirmed during yesterday's meeting of Deputy Prime Minister and Minister of Finance Simeon Djankov with European Commissioner for Taxation and Customs Union, Audit and Anti-Fraud, Algirdas Šemeta, in Brussels, posted officials from the press office of the Ministry of Finance. The reason for the meeting between Minister Djankov and Commissioner Šemeta were proposals made by Bulgarian producers, traders of fuels, and branch associations of carriers, related to the increased fuel prices on the Bulgarian and international markets.

"We were clearly told that Bulgaria, like any other EU country, can not even think of reducing the excise duty below the minimum that we have already achieved for gasoline. We are following the respective steps for diesel fuel as well and will be able to reach the minimum level for the European Union by 2013. Therefore, the conversation was way too short. We were just informed there was no such possibility. No country can do it," said Djankov, cited by the Bulgarian National Radio, immediately after the meeting.

Decline in diesel fuel prices across Europe is not likely to take place, according to the analysis of the European Commission. The trend is towards an increase in the prices of diesel fuels and decline of those of biofuels. The European Commission is drafting a directive which provides for changes in the calculation methods of the fuel excise duties after 2013. The expected result is cheaper biofuels while diesel fules will remain relatively more expensive. Thus, the growth of biofuels consumption will be boosted at the expense of the more problematic from environmental point of view diesel fuel," said Minister Djankov for Bulgarian media in Brussels.

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