Fuel prices in Bulgaria have climbed to a new record high amid an oil price spike on international markets triggered by the escalation of a dispute over Iran's nuclear program.

After at the end of last week crude oil prices hit USD 120 per barrel, a peak not seen since last August, Bulgaria's Lukoil Neftochim refinery increased prices of the most common type of gasoline, A95, by 1.7% and prices of diesel by 1.41%.

On February 16, wholesale prices of gasoline and diesel went up by BGN 0.04 and BGN 0.03, respectively, causing a similar spike in retail prices of the commodities.

As a result, diesel reached the record BGN 2.70 per liter, while unleaded gasoline settled at BGN 2.57 per liter.

February 2012's rates broke the 2008 record of BGN 2.67 per liter of diesel and BGN 2.54 per liter of gasoline A95.

According to data of the National Statistical Institute (NSI), diesel prices have climbed by BGN 0.30 in a year, while gasoline prices have added BGN 0.10-0.16 in the same period.

According to Stanimir Smilkov, trade officer at Rompetrol Bulgaria, the latest fuel price hike in Bulgaria is the natural result of the rising prices of crude oil on international markets.

In an interview for Sega daily, Smilkov says that there is not much reason for optimism at the current stage and next week may bring even bigger price spikes.

"I cannot predict the extent of the upcoming increase but fluctuations in crude oil prices affect all fuels. One must also take into account that macroeconomic indicators are also a strong influence and they are changing very dynamically," Rompetrol's Trade Officer explains.

Except for the domestic record in fuel prices, Bulgaria has also proved to be the European country where the cost of diesel exceeds the cost of gasoline by the biggest percentage, 5.6%

The situation is similar in the UK, where the diesel is 4.9% more expensive than gasoline.

The prevailing trend in the EU, however, is in the opposite direction, with average gasoline prices exceeding diesel prices by 3.7%.

The biggest difference is witnessed in the Netherlands, where diesel is 19% cheaper than gasoline.

The main reason for last week's oil price spike was Iran's warning that it may suspend crude exports to six EU countries in response to a proposed European embargo on imports of Iranian oil.