Key Takeaways
- The Competition Commission of Pakistan imposed a Rs60m fine on the All Pakistan Edible Oil Tanker Owners Association.
- The fine was split into Rs30m each for price fixing and market allocation.
- The association was found guilty of setting transportation rates and allocating business through a restrictive queuing system.
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 violating the Competition Act 2010.
The fine, split equally at Rs30 million each, was levied for price fixing and market allocation, according to the CCP’s findings.
The case originated from CCP’s market surveillance, which detected circulars fixing transportation charges for edible oil, ghee, and fats from Karachi ports to destinations across Pakistan.
In August 2024, the CCP initiated a suo motu inquiry and conducted a search inspection in February 2025. Based on material impounded during the search, the inquiry found that APEOTOA revised transportation rates 89 times between 2019 and 2025, including 52 increases and 37 decreases.
APEOTOA representatives acknowledged that the Pakistan Vanaspati Manufacturers Association (PVMA) and APEOTOA set transport rates through an agreement, despite APEOTOA’s claim that its rate circulars were merely advisory.
The CCP rejected APEOTOA’s claim, holding that even non-binding recommendations from a trade association may restrict competition by influencing members’ independent commercial decisions.
The commission also relied on the Supreme Court’s judgment in the PVMA case, affirming that competitors must remain free to determine their prices independently.
The CCP found that APEOTOA’s queue system allocated consignments among tanker owners instead of allowing independent competition for business. A September 2023 circular prescribed a Rs500,000 fine each for a tanker and its owner for violating specified allocation conditions.
The relevant market was defined as road transportation services for edible oil, ghee, and fats across Pakistan.
