CPC investigates the cooking oil market over price speculation

Sofia, Bulgaria - The Commission for Protection of Competition (CPC) has launched an in-depth preliminary investigation into the food sector, focusing on the sunflower oil market. The regulator's initiative is a direct response to growing media speculation and consumer concerns about a potential price increase for this essential food item. The cause for concern is the forecast of a lower yield of oil-bearing sunflowers in the country in 2025, which raises questions about market stability.

Under the Magnifying Glass: Antitrust Practices and Market Distortions

The CPC's investigation aims to uncover whether there are any illicit practices in the sector that could lead to an artificial and unjustified increase in the price of sunflower oil. The regulator is seeking evidence of potential anti-competitive violations, including secret agreements between market participants or abuse of a dominant position.

To gather the necessary information, the CPC has requested detailed data from a wide range of institutions and market players. The goal is to track the entire chain—from the production of raw sunflowers to the final product on the store shelf. The scope of the investigation covers the period from 2022 to the present, allowing the commission to track market dynamics over the past few years.

Data from Producers and State Institutions

The regulator has made specific requests to producers of unrefined and refined sunflower oil. They are required to provide information about their corporate structure, their main raw material suppliers, and the volumes of their produced goods. An analysis of the purpose of the produced quantities is especially important—whether they are intended for the domestic market, for export, or for their own consumption.

Furthermore, producers must provide clarity regarding their current raw material stocks, the alternative supply channels they have, and any difficulties with deliveries. Full information about the distribution channels they use is also required to track the product's path to the consumer.

In the meantime, the CPC has also turned to the Ministry of Agriculture and Food with a request for an official report. The ministry is expected to provide a list of oil-bearing sunflower producers in the country, as well as an expert assessment of whether the forecasted yield will be sufficient to cover consumer demand until the end of 2025. An analysis of possible state measures that can be taken if additional quantities are needed on the market has also been requested.

The preliminary investigation will clarify whether the price changes are due to objective economic circumstances or are the result of artificial manipulation. The CPC emphasizes that once the analysis of the collected information is complete, an official proceeding will be initiated in accordance with the law if there is sufficient data on violations. This move by the CPC aims to assure the public that the market is being carefully monitored and that consumers will be protected from potential unfair pricing.