Fuel prices fall, but consumers feel no relief: Retailers still under pressure from high costs

(Patria) - Although fuel prices on the market of Bosnia and Herzegovina have dropped significantly in recent weeks and reached their lowest level in several months, consumers do not feel this decline in their daily lives. Specifically, the prices of basic food items remain high, and the expected price reductions in stores have largely failed to materialize.

We discussed this topic with Ferida Kulović, president of the Consumer Association of the municipality of Kakanj "Potrošač", who points out that the causes of the current situation are multi-layered and that it is not realistic to expect an automatic reduction in retail prices as soon as fuel prices fall.

– The situation is complex. Retailers set prices primarily based on purchase prices, which remain high. Bosnia and Herzegovina imports most of its goods, and import costs, including logistics, customs duties, and storage, still significantly burden the final price of products – explains Kulović.

She adds that the trade sector is additionally burdened by high contributions and taxes on wages, which reduces the room for maneuver for price reductions. According to her, even previously announced subsidies that were supposed to help small retailers were in most cases not available to everyone.

– Subsidies were conceived as support, but many retailers did not receive them at all. Without concrete and widely available support, it is difficult to expect any serious changes in product prices – emphasizes Kulović.

It is also concerning that lower fuel prices have not only failed to lead to price reductions, but there is a fear that the coming period could bring a new increase in prices, especially if there is a renewed rise in oil prices on the global market.

– If there is another increase in fuel prices, we can expect chain reactions that will further worsen the already difficult situation of citizens. All costs are very quickly passed on to the end consumer – warns Kulović.

The "Potrošač" Association calls on the relevant institutions to become more actively involved in consumer protection, especially during inflationary pressures, through stronger market control, reduction of fiscal burdens for retailers, and the adoption of long-term and sustainable measures.

– In BiH, prices are freely formed, and inspectors control items with limited margins. However, we have a situation where, for example, fruit prices rise to an unacceptable level. Although some goods are produced locally, imports dominate the market, and retailers do not have much room to adjust pricing policy – concludes Kulović.

For consumers in BiH, this means they will continue to have to balance between ever-higher living costs and stagnating incomes, with little hope that economic changes from the top will be felt very soon at the level of everyday shopping.

(A.Č.Z.)