Propane-butane and gas - without excise tax from 1st of October

Bulgaria’s parliament has finally approved the temporary removal of excise duty on liquefied petroleum gas (LPG) and natural gas used as vehicle fuel. The zero rate will apply from 1st of October until 31st of December 2026, with the aim of limiting the impact of rising fuel prices on households and businesses.

The excise duty on LPG used as motor fuel will be set at zero euro per 1,000 kilograms, while the rate for natural gas used as motor fuel will also be zero. The measure is expected to create conditions for lower prices or, at least, to limit further increases, although the final effect for consumers will also depend on other components that determine fuel prices.

The changes were introduced amid rising energy prices and uncertainty on international markets linked to the geopolitical situation in the Middle East. According to the bill’s sponsors, disruptions in the supply chains for oil, petroleum products and natural gas are increasing costs for households and businesses, particularly affecting lower-income people and companies with significant transport and fuel expenses.

The measure will result in an estimated loss of around €20 million in state excise revenue over the three-month period. The government has limited the tax relief until the end of the year, while the Customs Agency will be responsible for implementing the new rates and monitoring their application.