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Will the Bulgarian tax on Russian gas increase bills in Serbia?

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Bulgaria has introduced a tax on the transit of Russian gas that is delivered through its territory, through the “Balkan Stream” gas pipeline, so consumers of the “blue” energy in Serbia could instead of the increase in retail prices, scheduled for November 1, in the amount of ten percent, facing an additional increase in bills of up to 20 percent, writes Beta referring to Danas.

The regulation adopted by Bulgaria, which took effect immediately, provides for a tax of $10.76 per 100 cubic meters of Russian natural gas delivered through the country’s territory through the “Balkan Stream”.

In accordance with the agreement that Serbia concluded with the International Monetary Fund in order to obtain a loan, Belgrade undertook a step-by-step increase in retail gas prices, and the latest will follow on November 1 in the amount of 10 percent, which means that from that date the energy will cost 5.02 dinars per kilowatt-hour with taxes and fees.

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However, thanks to the aspiration of the parliamentary majority in the Bulgarian parliament to collect revenue of 1.2 billion euros by establishing a new tax and thus pay for the construction of the “Balkan Stream” gas pipeline in just one year, consumers in Serbia may face additional and significantly higher gas prices.

Energy expert Velimir Gavrilović said that the tax prescribed by the authorities in Bulgaria increases Srbijagas’ purchase price of natural gas by 10 to 20 percent.

“In the event that the purchase prices of Russian natural gas for Serbia remain the same, it would also mean that consumer bills in retail will increase by up to 20 percent based on the tax”, said Gavrilović.
He added that it is hard to believe that Serbia could avoid paying the tax introduced by Bulgaria by supplying gas through the territory of Ukraine, due to the war that is being waged in that country. At the moment, both Hungary and Serbia are supplied with Russian gas via the southern route, the “Balkan Stream”.

Regarding the introduction of a tax on Russian gas that Bulgaria prescribed for transport through its territory, the President of Serbia, Aleksandar Vučić, said that this represents a big problem.

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“It will lead to a drastic increase in the price of gas”. This is a scary increase and we will talk to the Bulgarian side. This decision should not apply to Serbia”, said Vučić a few days ago.

The Ministry of Mining and Energy said that the topic will be discussed with representatives of the Hungarian and Bulgarian states.

“Serbia will do everything to ensure that citizens are not affected in any way.” “At the moment, all gas storages are filled both in our country and in Hungary, and we have 690 million cubic meters of gas in reserve, which is a historical record and significantly more than at the beginning of the previous heating season”, said the Ministry of Mining and Energy.

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