site.btaUPDATED Cooking oil Price Spikes to Lv 5.80/l Wholesale, Economy Minister Speaks of Speculative Pricing 

The wholesale priceof cooking oil has spiked to 5.80 leva/l, said the State Commission for Commodity Exchanges and Wholesale Markets on Sunday. Earlier the same day Economy Minister Kornelia Ninova spoke of speculative pricing on the cooking oil market and said the production cost is some 2-3 leva/l.

Ninova also said on Bulgarian National Television that if the competition regulator finds that somebody has a dominant position on the cooking oil market, it can impose a fine equal to a tenth of the turnover. “Also, if somebody intends to win big in a couple of days through export, the State won’t allow it,” she said. She mentioned that some EU countries have banned the export of grain and cooking oil, or capped prices. 

The cooking oil market in Bulgaria is free and prices are determined by supply and demand. The State can step in if the competition regulations are violated.

In the outgoing week, cooking oil appreciated by 18.5 per cent and traded for 4.16 leva/l on average. It was cheapest in Varna (3.10-3.80 leva/l) while in Sofia the price fluctuated between 3.10 and 5.80 leva.

The commodity prices index that reflects wholesale prices, went up by 1.80 per cent in the outgoing week, reaching 1.982 points. It is an increase by 8.48 per cent since the start of the year. A year ago, in early March, the index was some 1.550 points, or 28 per cent lower than the present level. The base level of 1.000 points is from 2005.  

Finance Minister: Unjustified price spike for a couple of days and coordinated media coverage

Finance Minister Assen Vassilev said on Bulgarian National Radio Suday that "certain outlets are raising prices unjustifiably and the raise gets coordinated media coverage". "After that things settle down".

"There were such scenes with cooking oil. We have information that identical campaigns are cooking for flour and sugar," said Vassilev.

There were media reports of people fighting for cheap cooking oil in supermarkets in parts of the country. A man died while waiting in a line at a large supermarket in the Black Sea city of Burgas. It was later reported that he died of a heart attack.

The Finance Minister said that the competition regulator is auditing the fuel market and the government will ask it to probe the cooking oil market as well. "If the regulator does not act quickly, it will raise the question whether we have the right people there," he added.