PRICES OF SOME GOODS ARE UNREASONABLY HIGH IN ARMENIA

Noyan Tapan
Dec 19 2006

YEREVAN, DECEMBER 19, NOYAN TAPAN. Economic entities with a
dominating position operate in the country’s butter, eggs, meat
products, granulated sugar, beer, cement, gasoline and diesel fuel
markets, and there is a probability of using unreasonable prices and
anticompetition agreements. It was stated at the December 19 sitting of
the RA State Commission on Protection of Economic Competition. Besides,
it was noted that as a result of 40% appreciation of the Armenian
dram against the US dollar, importers raise prices of goods by
40-89%, which represents an anticompetition phenomenon. Moreover,
under conditions of a decline in the cost prices of some goods, a
growth in sale prices of these goods has been observed: for example,
the cost price of an egg is 32 drams (about 0.87 USD), whereas it
is sold for 71 drams. The granulated sugar importing and selling
companies have indicated different prices. The commission decided to
warn economic entities to review sale prices within 5 days and take
measures to prevent and rule out the unreasonable rise of prices
and the use of such prices due to anticompetition agreements. Those
with a dominating position were told to present to the commission
information about measures on reviewing sale prices by January 20,
2007. The commission will implement a monitoring of sale prices in
the country’s markets from December 20, 2006 to January 20, 2007.