Enquiry launched into vegetable oil market

TIRANA, Oct. 22 – After fining insurance companies for fixing prices on compulsory car insurance, Albania’s Competition Authority has launched another price fixing investigation into the vegetable oil market. In a decision taken in early October, the Competition Authority announces it has started procedures for a preliminary investigation into the companies operating in the import, production and wholesale vegetable oil over allegations of limited competition. Preliminary results show the domestic vegetable oil market remains highly concentrated with only two companies Olim and Vajra Bimore which have a 60 percent and 40 percent market share respectively. For the first 8 months of this year, the Authority reports Olim has gained a 20 percent market share compared to last year in the domestic production of vegetable oil. Both companies import unprocessed vegetable oil and launch it for wholesale trade after processing it.
The Competition Authority says the margins of price increases are the same for same period of time, and that the price increase is announced earlier than it really takes place. The Authority has also noticed lack of supply for short period of time and an immediate increase in prices after this period which has been reflected on the retail sales market. The wholesale trade prices have not reflected price decreases in time and have reacted immediately after price increases in international markets.
The analysis by the Competition Authority shows the vegetable oil import and wholesale trade markets also remain highly concentrated.
The Authority says the investigation which will cover the Jan-Oct. 2012 period will determine if the vegetable oil market operates in limited competition.