By mid-May of this year, the Republic Market Inspection Service carried out 99 controls on the formation of prices of basic foodstuffs. In 14 cases, it was determined that traders did not adhere to the prescribed profit margins when setting prices, and fines in the total amount of BAM 210,000 were imposed. Also, the inspectors found other types of irregularities in the sales facilities, which were related to the issuing of invoices, adherence to prices, keeping business books and records, and on that basis fines in the amount of BAM 45,800 were imposed.

The Regulation on limiting profit margins in the trade of goods limits the maximum amount of margin that can be calculated on the purchase price. The aforementioned Regulation defines that companies, other legal entities and entrepreneurs dealing with the wholesale trade of goods determine the prices of certain products by applying a profit margin of 6% to the purchase price, and entities dealing with the sale of goods at retail establish the prices of certain products by applying a profit margin in a percentage of 8% on the purchase price.

The purchase price on which the profit margin is calculated includes the manufacturer’s or supplier’s invoice price, increased by the dependent procurement costs, which are defined by this Regulation (such as the costs of customs clearance, transport, storage and the like). As a rule, the final amount of the retail price depends on the amount of the purchase price, on which the prescribed profit margin percentage is calculated, and if there is an increase in the purchase price, the final retail price will also be higher.

In accordance with the aforementioned Regulation, the profit margin limit applies to the following types of goods:

• table salt for human consumption (pack of 1 kg)
• animal fat – pork fat
• sunflower oil 1 l and 5 l
• vegetable fat
• margarine (packaging of 250 g and 500 g)
• pasteurized and sterilized milk (pack of 1 l, 2.8% milk fat) and pasteurized milk packed in plastic foil 1 l
• yogurt, pack of 1 l, 2.8% milk fat and yogurt packed in plastic foil 1 l
• wheat flour
• bread products (made from TYPE-500 flour and TYPE-850 flour)
• sugar crystal packaging of 1 kg and 5 kg

For all other products that are not covered by this Regulation, prices are formed in accordance with supply and demand on the market, respectively, it is a question of free formation of prices, as prescribed by the Law on Price Regulation.