Competition Commission of Pakistan imposes Rs60m fine on edible oil tankers
ISLAMABAD: The Competition Commission of Pakistan (CCP) has imposed a total penalty of Rs60 million on the All Pakistan Edible Oil Tanker Owners Association (APEOTOA) for fixing transportation charges and allocating business among tanker owners via a restrictive queuing system, in violation of Section 4 of the Competition Act 2010. The commission imposed Rs30m each for price fixing and market…
The Competition Commission of Pakistan (CCP) has penalized the All Pakistan Edible Oil Tanker Owners Association (APEOTOA) with a total fine of Rs60 million for fixing transportation charges and allocating business among tanker owners via a restrictive queuing system, breaching Section 4 of the Competition Act 2010. The commission handed out Rs30 million for price fixing and Rs30 million for market allocation.
This investigation began through CCP’s market surveillance, which found circulars setting transportation charges for edible oil, ghee, and fats from Karachi ports to destinations throughout Pakistan. The commission launched an inquiry in August 2024 and conducted a search inspection in February 2025. Based on materials seized during the search, it was discovered that APEOTOA altered transportation rates 89 times between 2019 and 2025, with 52 increases and 37 decreases.
Corresponding circulars from the Pakistan Vanaspati Manufacturers Association (PVMA) matched these rate changes, and APEOTOA representatives admitted that both associations set transport rates through an agreement. The commission dismissed APEOTOA’s assertion that its rate circulars were merely advisory, arguing that even non-binding recommendations from a trade association could restrict competition by influencing members' autonomous commercial decisions.
It also cited the Supreme Court’s decision in the PVMA case, which confirmed that competitors must retain the freedom to independently determine their prices. Additionally, the commission determined that APEOTOA's queuing system allocated consignments among tanker owners instead of encouraging independent competition for business.
APEOTOA had been imposing a Rs500,000 fine each on a tanker and its owner for violating specified allocation conditions, as per a September 2023 circular. The CCP determined that the relevant market for this investigation was road transportation services for edible oil, ghee, and fats across Pakistan.
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