Home / The University / Faculties / Faculty of Economics and Business Administration / Current Scientific Activities / FEBA has published a study on the factors affecting natural gas prices and the economic consequences of price spikes in 2022




The energy crisis that affected all electricity and natural gas markets in the European Union had economic repercussions in Bulgaria during the period of 2021-2022. Over the past year, Bulgarian industrial consumers had to contend with four to ten times higher costs for natural gas deliveries and pay six to ten times higher prices for electricity. As a result of these more expensive energy sources, the Bulgarian population faced exceptionally high inflation levels, estimated to be four to five times higher than the average levels of previous years. This energy crisis served as a wake-up call for Bulgaria regarding the effects of its energy dependence on Russia as the sole supplier of natural gas, prompting processes of transitioning businesses towards alternative energy sources. In response to the extreme prices, the industry in Bulgaria significantly reduced its natural gas consumption by over 30% in 2023, despite a 2% increase in industrial production in the first quarter of 2023 compared to the same period in 2022.

The report published by the Faculty of Economics and Business Administration (FEBA) examines the fundamentals of the Bulgarian natural gas market and its national peculiarities. A team of professors and PhD students from the Department of Industrial Economics and Management analyzed the factors influencing the dynamics of natural gas prices in recent years using statistical methods. Market trends and policy recommendations are outlined based on a discussion organized by FEBA on the subject in early 2023.

Please, find the report HERE.

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