The State Commission for the Protection of Economic Competition Investigates the Rise in Retail Prices of Sunflower Oil

The State Commission for the Protection of Economic Competition of Armenia has recorded that between December 1, 2020, and January 11, 2021, there was a rise in the retail prices of sunflower oil in several trade facilities belonging to major commercial networks.

As a result of the conducted study, the following has been noted:

• Approximately 96% of sunflower oil imported into Armenia originates from the Russian Federation.
• The average import prices for 1 liter of sunflower oil from Russia to Armenia have increased by 6-16%, depending on the import batch.
• Businesses in Armenia make payments for sunflower oil purchased from Russia in US dollars and Russian rubles, while recently the Armenian dram has depreciated by about 4% against these currencies.
• During 2020, due to COVID-19, the replenishment of reduced reserves in Russia, a decrease in sunflower crop yields, and a sharp increase in demand for exported sunflower (approximately 4 times compared to the previous year) led to a 26% increase in oil prices in that country.
• A major player in the Russian sunflower oil market, which holds about 9% market share (the company “Эфко”), raised its prices for oils it produces (under the “Слобода” and “Altero” brands) by approximately 48% in December 2020.

The aforementioned factors have impacted the conditions of sunflower oil circulation and prices, resulting in an average retail price increase of 14% (from 830-845 dram on December 1, 2020, to 950-960 dram on January 11, 2021). To accurately assess the extent of this price increase, a more comprehensive and long-term study is necessary.

It is also worth noting that due to significant price increases of sunflower oil in Russia throughout 2020, major commercial networks and producers have signed agreements establishing a maximum wholesale price of 95 rubles for 1 liter of sunflower oil, and a retail price of 110 rubles for the first quarter of 2021.

Furthermore, a rise in retail prices for sunflower oil by an average of 11% was also observed during October-November 2020.