The Commission for the Protection of Competition (CPC) has identified substantial markups in Bulgaria’s food sector, reaching up to 90% on certain products. Deputy Chairman Zhelyo Boychev spoke to Nova TV, explaining that the latest monitoring of basic goods and fuel prices shows the problem is concentrated in the final stage of the supply chain-retail.

Boychev detailed that products costing 10 leva (5 euros) at delivery can be sold for 17 to 19 leva due to high retail markups. He also highlighted that large retail chains impose additional conditions on suppliers, requiring discounts for marketing, logistics, and other services, which further drive up consumer prices. Manufacturers often do not report these practices for fear of losing market access.

To address the issue, the CPC has launched new analyses and is actively collecting data on contracts between producers and retail chains. Information has been requested from major retailers regarding their pricing methods, supply costs, and contractual arrangements with manufacturers, forming the basis for detecting abusive practices.

In the fuel sector, the regulator continues to monitor prices amid public concern over rising gasoline and diesel costs. While no evidence of speculative activity has yet been confirmed, the CPC is gathering data from state institutions to obtain a full understanding of the market. Fuel monitoring is ongoing due to past violations, including anti-competitive behavior by major players like the Lukoil group, which has previously received warnings and recommendations from the commission.

A new investigation has been launched concerning Lukoil’s potential abuse of a dominant position and actions that could restrict competitors’ access to essential infrastructure, including port terminals, tax warehouses, and oil pipelines. In markets dominated by a single player, collusion among multiple companies is less common; instead, the main concern is withholding supply or otherwise exploiting market power, which can create artificial shortages - a key focus of the CPC’s current oversight.

To strengthen monitoring, the CPC has requested additional information from the National Revenue Agency and the Customs Agency, including data on A95 gasoline and diesel prices across cities and the quantities of fuel entering Bulgaria. The regulator aims to track market dynamics closely and prevent distortions that could undermine competition.