The Hungarian Competition Authority (GVH) has launched a rapid sectoral investigation into the cooking oil market, prompted by a notable increase in prices in Hungary compared to surrounding countries. The GVH suspects that certain market characteristics may have contributed to the higher price levels in Hungary.

In collaboration with the Hungarian National Bank (MNB), the GVH aims to protect consumers from excessive price hikes and unlawful practices stemming from a lack of competition. This cooperation was announced in December, focusing on maintaining fair market competition and reducing inflation.

Currently, the consumer price level in Hungary is at 69% of the EU average, with food prices only 4.9% lower than the EU level. However, cooking oil prices are approximately 10% higher than regional averages, raising concerns about the justification for such discrepancies.

Data from the Central Statistical Office indicates that per capita cooking oil consumption in Hungary is around 10-12 liters annually, translating to over 100 million liters used in households, primarily sunflower oil. The demand for sunflower oil is mostly met by domestic producers, with imports accounting for about 10-20%.

Since December 2024, the price of cooking oil in Hungary has risen by 15.8% in euro terms, significantly outpacing the 9.7% increase seen in other Visegrád countries during the same period. This stark price increase, even with margin restrictions in place, highlights the growing gap between domestic prices and regional averages.

Given these findings, the GVH has deemed it necessary to investigate the factors affecting the cooking oil market to understand the deviations from average prices in Visegrád countries and European stock market prices. The rapid sectoral investigation is a procedure outlined in competition law to address potential market distortions requiring urgent intervention.

The investigation will involve analyzing information collected from market participants, and the GVH will publish a report summarizing the findings within a month, with the possibility of extending this period if justified.