site.bta Petroleum and Gas Association Suggests Strict Measures against Illegal Fuel Trade

Petroleum and Gas Association Suggests Strict Measures against Illegal Fuel Trade

Sofia, March 9 (BTA) - The share of the informal sector in fuel trade is between 25 and 30 per cent and its worth is estimated at 1 billion leva a year, the Chairman of the Bulgarian Petroleum and Gas Association, Andrei Delchev, told journalists Thursday. This proportion is too big, Delchev said. Fraud starts from the import of fuel, at customs warehouses and illegal unloading points in Rousse and elsewhere along the Danube, and continues at in-house filling stations and through excise duty and tax evasion scams, he added.

According to the association, there are between 6,000 and 7,000 in-house filling stations in Bulgaria, while the Finance Ministry count is 30,000. Only 1,400 of these have been registered according to the requirements of the law and are digitally connected with the National Revenue Agency. All the rest are places where illegally imported fuel of dubious quality is sold, Delchev said.

Faulty legislation and control, corruption and unequal approach to the different players on the market are the main reasons for illegal trade, Delchev thinks.

Asked about the claims of businessman-turned-politician Vesselin Mareshki that there is a cartel in fuel trade, Delchev said Mareshki is in the middle of an election campaign and it is up to the Competition Protection Commission (CPC) to judge whether there is a cartel or not. The association has enough evidence that there is no cartel and the information will be placed at the disposal of the CPC.

To curb illegal fuel trade, the association suggests increased control and a new law relevant to the sector, including prison sentences and confiscation of the vehicles. No one would risk having their car confiscated due to using illegal fuel that is cheaper by 0.20 leva per litre, Delchev said.

There are popular retail chains involved in fuel trade scams, the control authorities know them and should just do their job, he pointed out. Taking a question about how someone can tell an illegal filling station from a legal one, Delchev said there is a reasonable level of prices below which it is clear that there is tax evasion or a fuel quality problem along the chain.