Under market law, the simultaneous presence of several companies offering an identical product or service on the same market generates competition that benefits the consumer. This competition pushes each company to attract customers by offering higher-quality services at a price lower than that of its rivals, in accordance with the law of supply and demand.
However, these theoretical postulates do not seem true in the Tunisian economic reality. It is rare to encounter private companies that strictly comply with competition rules. It is common for firms operating in a specific niche to decide to agree on a uniform price for their products or services, or even to raise their prices in a concomitant manner, by the same amount and at the same moment.
Distortion of competition norms, particularly through price-fixing agreements or uniform price increases between so-called competitors, generally occurs within professional entities. The Competition Council sometimes sanctions these actions, highlighting unilateral price increases.
Merchants have changed their strategy and are now pressuring the State to raise prices themselves.
One of the most common and obvious examples is the revision of mineral water prices.
It is well known that bottled mineral water is now offered at a markedly higher rate by merchants within neighborhoods. They are currently exploiting the shortage to increase their margins at will and impose their own prices. And consumers, delighted to still find them on the market, pay without complaint.
Result of the run: In response to the pressure on availability, the Ministry of Trade regulated mineral water prices in August 2026, establishing price caps (0.600 DT for 0.5L to 0.950 DT for 2L) as well as margins of 15 millimes to combat speculation.
However, to rectify market anomalies and combat speculation, it would have been preferable for the State to strengthen controls, primarily in the neighborhoods.
If there is any speculation, it is probably among certain neighborhood retailers who evade oversight.
Has anyone seen the Ministry of Trade’s costly inspectors pass through their neighborhood and sanction violators?
Amine BEN GAMRA
Chartered Accountant
Statutory Auditor
Member of the Tunisian Order of Chartered Accountants
