The government of Republika Srpska said on Thursday it would cap retail and wholesale margins on a range of basic food products, medicines and fuel in an effort to curb rising living costs driven by global energy market disruptions.
Trade and Tourism Minister Ned Puhovac said after a government session that the measure was expected to lower prices of basic food items, although he did not specify by how much. The final impact will depend on retailers’ procurement costs and movements on international markets, he said.
Under the decision, maximum trading margins on basic food products will be limited to 6% in wholesale and 8% in retail. For medicines, the cap is set at 8% in wholesale and 20% in retail.
The restrictions will apply to a range of everyday consumer goods, including salt, lard, sunflower oil, milk, yogurt, wheat flour, bread, sugar, baby food, diapers and dishwashing and laundry detergents.
Authorities also confirmed limits on fuel margins. Wholesale margins will be capped at 0.03 euros per litre, while retail margins will be limited to 0.13 euros per litre.
Puhovac said inspection services would carry out daily checks to ensure compliance and prevent abuses. The measures are expected to take effect on June 1.
Governments across Southeast Europe have been grappling with persistent inflation in recent years, with food and energy prices particularly sensitive to global market developments. Disruptions in oil, gas and grain markets have often quickly fed through to retail prices, putting pressure on household budgets across the region.
Several countries have responded with administrative caps on margins, price controls or other market interventions aimed at easing the burden on consumers, particularly for essential food and energy products.