The Hungarian Competition Authority has concluded that several structural and cost-related factors drove the increase in sunflower cooking oil prices in Hungary, while finding no evidence of anti-competitive conduct in the market. The findings come after the authority completed an accelerated sector investigation launched earlier this year in cooperation with the Hungarian National Bank.
The investigation was opened in January 2026 after concerns emerged that cooking oil prices in Hungary had risen significantly faster during 2025 than in neighboring countries, particularly the other Visegrad states. According to the authority, the euro-denominated consumer price of sunflower oil increased by roughly six percentage points more than the average price increase recorded in Slovakia, Poland, and the Czech Republic over the same period.
EPR Fee Emerges as Major Cost Driver
A central conclusion of the report is that Hungary’s extended producer responsibility (EPR) regime had a substantial effect on consumer prices. Unlike many other European jurisdictions, Hungary applies the EPR fee not only to packaging but also to the cooking oil product itself.
The GVH found that the increase in the EPR fee introduced in October 2025 materially raised retail prices and now accounts for approximately 10% of the final price paid by consumers for sunflower cooking oil.
The authority suggested that the current framework could be redesigned through an eco-modulation system, under which retailers maintaining a nationwide collection network for used cooking oil could benefit from incentives. Such a model, according to the report, could both improve environmental outcomes and lower retail prices.
Margin Cap Had Little Real Effect
The investigation also examined the effect of the government’s margin-reduction measure introduced on 17 March 2025, which capped the retail gross margin for sunflower oil at 10%.
According to the GVH, the vast majority of products were already being sold with margins below this threshold before the intervention took effect. As a result, the measure had only a negligible impact on prices and did not materially reduce inflation in this product category.
This finding is particularly notable in the context of broader debates over the effectiveness of administrative price-control mechanisms in Hungary.
Exchange Rate and Raw Material Costs Also Played a Role
The authority further identified international raw material prices and currency movements as significant contributors to price developments.
Because the forint strengthened against the euro during 2025, Hungary’s euro-based inflation figures appeared technically higher in cross-country comparisons. At the same time, sunflower seed prices remained closely linked to international market trends, while domestic processing costs—such as labor—continued to be incurred in forints.
This combination, the authority said, contributed to the divergence between Hungarian price increases and those observed in neighboring countries.
No Evidence of Competition Law Infringement
Importantly, the GVH stated that its investigation did not uncover any indication of cartel conduct, abuse of dominance, or other anti-competitive behavior in the domestic sunflower oil market.
The authority has now published the draft report for public consultation, allowing market participants to submit comments until 26 May 2026, after which the final report and responses will be published.
