Bulgaria has sufficient fuel reserves and faces no immediate threat of shortages despite tensions around the Strait of Hormuz, according to Rumen Spetsov, special manager of Lukoil in Bulgaria. Speaking to “24 Chasa,” he said the country’s oil supply chain is not directly tied to the Gulf chokepoint because the Burgas refinery receives crude shipments through the Turkish terminal at Ceyhan. The real issue, he explained, is the growing number of blocked tankers in the Strait of Hormuz, which is pushing transportation costs sharply higher and affecting fuel pricing worldwide.
Spetsov said the refinery in Burgas currently has enough reserves to operate for at least 90 days. He stressed that after sanctions on Russian oil supplies, the facility adapted to processing multiple types of crude, something many European refineries struggled to do. “Thanks to the engineers in Burgas, who are doing incredible work, we managed to maintain operations and adapt the refinery,” he said. According to him, some European plants halted production because they could not reconfigure systems built specifically for Russian oil, while the Burgas refinery can now combine raw materials from different sources.
He noted that Bulgaria can receive oil from countries including Libya, Iraq, Kazakhstan, Azerbaijan, and Norway, reducing dependence on any single supplier or region. Still, he emphasized that fuel prices remain tied to global market conditions. “The refinery in Burgas does not trade oil as a commodity. It buys crude to produce fuels, and the fuels are sold according to prices on the Platts platform,” Spetsov explained.
He added that crude oil prices alone do not determine the final cost of fuel. Transportation and insurance now make up a significant share of the total expense. According to Spetsov, a tanker may carry around one million barrels, and while Brent crude could trade near 100 dollars per barrel, transport costs can add another 5 to 25 dollars per barrel depending on the route and geopolitical risks. Insurance costs are added on top of that, meaning a barrel arriving in Burgas could effectively cost between 130 and 140 dollars.
Spetsov also described how the refinery structures its purchases to reduce exposure to sudden market swings. Contracts are tied to formulas based on Brent quotations, while payments are calculated using average prices over several days after loading. “We commit to quantities in advance, but the exact price becomes clear later,” he explained. He noted that hedging prices is technically possible, but such financial operations require hundreds of millions of dollars, resources the refinery does not currently have available.
According to Spetsov, Bulgaria remains fully supplied with all major fuel types, including aviation fuel. Airlines operating in the country are reportedly experiencing no shortages, and even flights diverted from abroad could be accommodated and refueled at Sofia Airport if necessary.