Competition Commission of Pakistan imposes Rs60m fine on edible oil tankers

The Competition Commission of Pakistan (CCP) has imposed a significant fine of Rs60 million on the All Pakistan Edible Oil Tanker Owners Association (APEOTOA) for engaging in anti-competitive practices. The penalty, which includes Rs30 million for price fixing and Rs30 million for market allocation, was imposed due to the association's violation of Section 4 of the Competition Act 2010.

The case stems from the CCP's market surveillance, which uncovered circulars fixing transportation charges for edible oil, ghee, and fats transported from Karachi ports to various destinations across the country. In August 2024, the CCP initiated a suo motu inquiry and conducted a search inspection in February 2025, uncovering that APEOTOA revised transportation rates 89 times between 2019 and 2025, with 52 increases and 37 decreases.

The commission rejected APEOTOA's claim that its rate circulars were merely advisory, stating that even non-binding recommendations from a trade association can restrict competition by influencing members' independent commercial decisions. Additionally, the commission found that APEOTOA's queue system allocated consignments among tanker owners, rather than allowing independent competition for business.

Brief written by urgent.news from Dawn Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.