The Spanish consumers rights organisation, FACUA has issued a warning about oil-price scam in supermarkets.

According to the FACUA, eight of the main supermarket and hypermarket chains have increased 9% in November on their white brandt, 1L bottles of extra virgin olive oil with near identical pricing varying around one cent.

These are increases that “do not respond to price increases at source” and reveal “a parallel pricing strategy” which FACUA has reported to the National Markets and Competition Commission (CNMC) “in order to “Open an investigation and try to find out if there is an agreement between the large distribution chains.”

Today, the price of a 1-liter bottle of extra virgin olive oil is identical in the white brands of Alcampo, Aldi, Carrefour, Dia, Eroski, Hipercor, Lidl and Mercadona. The same thing happens with 3l containers and in 750 ml containers where the maximum difference is only 1 cent.

FACUA warns that, beyond the possible existence of a price agreement contrary to the competition law, the parallel increases that large chains have incurred in their own olive oil brands may also represent illegal increases in profit margins. And the Royal Decree-Law by which the IVA reduction in force until the end of the year was approved prohibits in its article 72 increases in margins on foods affected by the measure. In other words, Government measures to bring prices down by lowering IVA are being circumvented by supermarket chains, it appears.

FACUA’s analysis of prices show that at the beginning of November, the eight distribution chains mentioned were selling 1L bottles of virgin olive oil (their own brands) at 9.25 euros, which is 9% more expensive than in September and October, when Dia, Eroski, Hipercor and Mercadona offered it at 8.50 euros, while Alcampo, Aldi, Lidl and Carrefour had it at 8.49 euros.

So, no, you haven’t been imagining it, large supermarket-chains have probably fixed prices so that you cannot get it cheaper by going to the other one in town.

(News/Noticias: Spain)