site.btaUPDATED PM Denkov Says Collection of Lukoil's Excess Profits from Price Difference of Two Types of Oil Is Realistic

Prime Minister Nikolay Denkov described the collection of Lukoil's excess profits from the difference in prices of the two types of oil as “realistic”, while talking to journalists in Blagoevgrad (Southwestern Bulgaria) on Monday. 

"This was the focus of the discussion in the morning," he said regarding the morning meeting in parliament between the parties supporting the cabinet. It was attended by Denkov, Finance Minister Assen Vassilev, as well as representatives of the parliamentary groups of GERB-UDF, Continue the Change - Democratic Bulgaria and Movement for Rights and Freedoms. During the discussion, the participants agreed that the derogation should remain, and the refinery must pay the taxes due.

"It is not about a deal, it is about what is most useful for Bulgaria. What was proposed last week - to cancel the derogation within seven days - is impossible today, as it was months ago when such a proposal was also made. This would mean that the refinery will not have any oil in 10-15 days, when the stocks and reserves that are there are exhausted," Denkov stressed.

Denkov pointed out that the different oil is secured with long-term contracts that require months of negotiations, which is the main reason for the previous decision to suspend the derogation in stages.

„What we expect is for Lukoil to comply with the laws as they are, which is a total tax of about 60% on excess profits, so this is the BGN 500 million we are talking about,” the Prime Minister pointed out. "We all want these taxes to enter the treasury as soon as possible and no later than the end of the year," he added.

What we expect is for Lukoil to comply with the laws as they are, which is a total tax of about 60% on excess profits, so this is the 500 million we are talking about, Denkov said. "All of us together want these taxes to enter the treasury as soon as possible and no later than the end of the year," the prime minister added.

To a journalist's question whether it is possible to reduce petrol prices and if so under what condition, Denkov noted that such a measure could be punishable by the European Commission. He stressed that it was important that the taxation on excess profits should enter the budget in the right way, which follows the law.