site.btaDeputy PM Aleksiev: 10% Cap Being Considered on Markup on Staple Foods

A cap is being considered on the markup on staple foods, Deputy Prime Minister for Economic Policy and Minister of Transport and Communications Hristo Aleksiev said on bTV on Sunday.

Aleksiev said the markup should not exceed 10%. The cap could be applied on between 50 and 100 products in the small consumer basket, he added. The measure can be introduced either by legal regulation or by the common will of the government and the supermarket chain operators, which has happened in other countries before.

Asked whether there is a cartel agreement among the large retail chains, the Deputy PM said: "The competent institution which can ascertain this is the Commission for Protection of Competition. We have prepared some information, and we will provide it to the Commission." There are some disconcerting facts, he said. "I cannot speculate whether a cartel agreement exists or not, but I think 'yes' is the more likely answer."

"Bulgaria has the lowest prices of fuels, the cheapest transport, the least expensive natural gas, and sadly, the lowest labour costs, but the prices of some products are higher [than in Western Europe]. Why is that? Is it not because there are cartel agreements and excessive profits?" Aleksiev argued. He said over 600 checks have been conducted in the food sector.