Wash peppers and tomatoes.
Grill or roast peppers until charred. Transfer to a large bowl and cover with plastic wrap. Let them stand for at least 30 minutes, to cool off and steam.
Peel peppers. Remove stems and seeds.
Bring a large pot of water to a boil.
Make a small cross cut on the bottom of each tomato.
Add tomatoes and boil for 1 minute. Take them out and rinse with cold water.
Peel tomatoes and roughly chop.
In a large pot, combine tomatoes, salt, sugar, oil and peppers. Cook over medium heat for 1 1/2 -2 hours, until thick. (to test doneness, when using a wooden spoon, scrape the bottom of the pot and the lutenitsa shouldn't be moving to the inside).
Remove from heat and let it cool.
Wash 5 8-oz ball jars and rheir lids.
Fill jars with lutenitsa. Close tight.
Keep in the fridge for up to 10 days or sterilize (can) to preserve for longer.
Fill a canning pot with water. Add jars. Boil for 5 minutes, then let them cool. Keep in a cool and dry place for up to 6 months.