“Recovery and the transition to carbon neutrality are transforming the global economy and affecting oil prices”, said in an interview Shteryo Nozharov, lecturer at the University of National and World Economy and economic advisor at the Bulgarian Industrial Association. “The increase in fuel prices is a global trend related to the increase in the price of gas, respectively, and its alternatives are also becoming more expensive,” he added.
Shteryo Nozharov predicts that this trend will continue for about a year, but prices will stabilize at current levels - about 90 to 100 dollars per barrel for oil. “This is a high price, because eight months ago it was twice as lower”, the expert added.
“This is related to the green deal. Climate change is visible to all and it is difficult to dispute it. Most countries around the world are uniting around their efforts to achieve carbon neutrality in the 2030-2050 horizon, and the alternative fuel for the carbon transition is gas. The prices of all other petroleum products are starting to be compared to it, which, along with gas as its alternatives, are starting to rise in price. These processes are also influenced by the economic recovery, which is due to the incoming digital economy - the replacement of human labor with mechanical and development of the services sector, which is beginning to dominate the structure of the economy in GDP. The services sector is undergoing rapid development and renovation, as it is to a certain level less affected by the pandemic”, added also Shteryo Nozharov.
He explained that rising energy prices do not lead to inflation. According to him, the feeling of such in our country is due to the weak institutional environment.
