High fuel prices lead to hikes in all commodities prices and a contraction in consumption and both consumers and producers lose, the Head of State said

 

It is necessary to identify measures to stabilise the economic environment and to combat inflation in favour of the Bulgarian consumer, strictly following market mechanisms. This is what President Rumen Radev said at a 2 Dondukov working meeting with officials from the energy company Lukoil. During the talks, the possibilities for curbing inflation and for a more predictable economic environment were discussed.

 

High fuel prices are among the leading reasons for the endearment of all goods and lead to a contraction in consumption, which is a loss not only for consumers but also for the producer, the Head of State said. Radev added that the economy and inflation depend to a large extent on the value of fuel production, which also sets Lukoil's strategic importance for this country, especially during crises.  The President highlighted the company's important role as a major fuel producer, holding a dominant market share in Bulgaria. He added that the upcoming Lukoil management meeting with the Bulgarian government is a good opportunity to identify effective solutions to combat inflation in the country.

 

Lukoil President Vadim Vorobyev said that in recent days, representatives of the Bulgarian government and the company have discussed possible actions to stabilise the economic environment and to stifle inflation.