Parliament's budget committee has backed, at first reading, a plan to cut excise duty on natural gas and liquefied petroleum gas (LPG) used as car fuel to zero. The bill, put forward by Stefan Belchev of "Progressive Bulgaria" and a group of MPs, would run from October 1 to December 31, 2026.

Fourteen MPs voted for the change, two abstained, and none voted against. The tax break would be written into the transitional provisions of the law on excise duties and tax warehouses.

The MPs behind the bill say it's needed to soften the economic hit from rising energy prices and disruptions in oil, fuel and gas supply chains. They blame the turmoil in the Middle East and instability on world energy markets, and say temporary steps are needed to cushion households and businesses from the impact.

Excise duty on energy products is set under a 2003 EU directive on taxing energy products and electricity across the bloc. The directive lets member states temporarily and selectively cut tax on specific fuels in emergencies. The bill's backers say the current price shock counts as exactly that kind of emergency.

Belchev said the temporary tax break will bring quick relief to households and businesses, and that gas and LPG prices for end users should fall right away. He said that, given the current market turmoil, the move is a needed tool to deal with the price shock. But he also warned that tax breaks with no clear target cost the budget dearly and usually push up demand for fossil fuels, widening the gap between supply and demand. That's why, he said, the measure must stay strictly limited in time.

Deputy finance minister Lyudmila Petkova said the law would cost the budget 20 million euros overall. Of that, 17 million euros comes from scrapping excise duty on LPG — a fuel used mainly by city transport, where the saving works out at 17 euro cents per kilogram. Petkova said most of the relief would in effect go to city transport and so reach lower-income people, who tend to drive LPG-fuelled cars.

Once the law is finally passed, she said, the finance ministry will tell the European Commission that it has cut excise duty on natural gas and LPG to zero.

Deputy energy minister Kiril Temelkov said the energy ministry backs the bill with no objections.